Motilal Oswal is bullish on Tata Chemicals has recommended buy rating on the stock with a target price of Rs 318 in its research report dated May 18, 2020.
Motilal Oswal 's research report on Tata Chemicals
Revenue across geographies has been impacted during the quarter due to decline in volumes (in India, Europe, and Africa on supply chain disruption) and in realization (in India, North America, and Africa). This has resulted in 7% decline in consolidated revenue. However, benign energy prices and operational efficiencies have aided operating performance, leading to EBITDA de-growth of 10% only, considering certain TTCH geographies have witnessed decline in realizations.
Outlook
We have cut our earnings estimates by 19%/4% for FY21/FY22 – factoring the current supply chain disruption and demand scenario – and arrived at an SOTP-based TP of INR318. Maintain Buy.
For all recommendations report, click here
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