Shares of Tata Chemicals climbed 10%, the most in over six months after the company reported sharp jump in Q4 net profit.
Tata Chemicals Q4 FY22 (Consolidated, YoY)
Revenue up 32% at Rs 3,480.67 crore Vs Rs 2,636.21 crore
EBITDA up 132.5% at Rs 657.37 crore Vs Rs 282.72 crore
EBITDA margin 18.89% Vs 10.72%
Net profit up 3,833.56% at Rs 462.98 crore Vs Rs 11.77 crore
Analysts say that volume growth in U.S. soda, high pricing/margins in Kenya, India aided the earnings growth. They also note that the constraints in soda ash supply is a positive for the firm over a 2-3 year period.
Trading volume is 20 times the 30-day average. Of the six analysts tracking the company, two maintain ‘buy, three suggest ‘hold’ and one recommends ‘sell’. The return potential of the stock is -3.1%.
Source: Exchange filing, Bloomberg, Brokerage notes