Business

Tata Chemicals – Long Term Bullish Outlook Offsets Near Term Worries: Nirmal Bang

[ad_1]

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Our channel checks and interaction with Tata Chemicals Ltd.’s management suggests potential headwinds in terms of cost pressures in H2 FY23, and downside in demand in the event of a global economic slowdown/recession hurting traditional Soda Ash markets for glass in auto, construction and container glass.

This and the stock’s 23% rally year-to-date, does pose some risk to the tactical momentum in the stock, and hence we suggest entry on declines.

The stock looks reasonably valued at 11.7 times price-to-earning on FY24E – implies 35% discount to the five-year median readings on 12-month rolling PE of 18.3 times versus earnings per share compound annual growth rate of 37.3% over FY22-FY24E.

Tata Chemicals’ revenue growth will likely improve in FY23E/FY24E to 23.8%/9.0%, with Ebitda margin also remaining healthy at 23.5%/23.9% versus five-year average of 18.3%.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.



[ad_2]

Source link

What is your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Comments are closed.

More in:Business