Tata Chemicals - Confident about domestic business - Emkay

Reco: BUY
CMP: Rs 319
Target Price: Rs 400

- Consol results were below est due to subdued performance of subsidiaries. APAT Rs 2.3bn, -20% yoy, was below our est of Rs 2.8bn with AEPS of Rs 9.1

- Stand alone results remain encouraging despite flat APAT of Rs 1.6bn adjusted for EO income. Chemical segment margins remained robust at 22.8% driven by firm soda ash realisation

- US subsidiary GCIP results were below est with PAT down by 23%yoy to Rs 0.6bn. BMGL also posted sluggish results with losses of Rs 130mn

- We maintain our FY13/14 EPS of Rs 38.2/42.4 supported by strong performance of domestic business and reiterate our BUY rating

Source : Equity Bulls

Keywords