Motilal Oswal is bullish on Tata Chemicals has recommended buy rating on the stock with a target price of Rs 703 in its research report dated May 04, 2019.
Motilal Oswal's research report on Tata Chemicals
Revenue grew 8% YoY to INR27.6b (our estimate: INR28.7b) in 4QFY19. EBITDA rose 3.6% YoY to INR5.3b (our estimate: INR5.4b), with the margin contracting 80bp YoY to 19.2% (our estimate: 18.7%). Adj. PAT remained flat at INR3.1b (our estimate: INR2.6b). PBT was reported in-line, however adj. PAT came in higher than expected due to deferred tax benefit of INR462m which led to significantly lower than expected tax rate of 6.2% (our estimate: 23.9%).
Outlook
We value the stock on an SOTP basis (FY21E) arriving at a TP of INR703 which implies 26% upside. Maintain Buy.
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