On Wednesday, September 23, Tata Sons purchased 2.21 million equity shares of Tata Chemicals for Rs 63.56 crore. The promoter bought these shares at price of Rs 287.58 on the NSE though block deals, exchange data shows. The names of sellers were not ascertained immediately.
In the last month, the stock has underperformed the market and fell 11 per cent, as compared to 4 per cent decline in the Nifty, till Monday.
For the April-June quarter (Q1FY21), the company’s consolidated revenue from operations slipped 9 per cent year on year (YoY) to Rs 2,348 crore, owing to depressed standalone results and mixed performance at the subsidiary level. Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 10.4 per cent YoY to Rs 400 crore and the margin contracted by 61bps margin to 16.8 per cent, owing to pricing pressures in international markets, supply chain disruptions and Rallis’ negative EBITDA (Rs-9.8 crore).
“After the transfer of the high-value consumer business to Tata Global Beverages (now Tata Consumer), soda ash remains key focus for Tata Chemicals. We believe that the near-term softness in soda ash demand due to scaled down operations globally across various sectors and structural weakness in the automotive sector will weigh on Tata Chemicals earnings,” analysts at Emkay Global Financial Services said in result update. The stock was trading close to its target price of Rs 302 per share.
At 09:46 am, shares of Tata Chemicals were trading flat at Rs 294, against 1.1 per cent decline in the Nifty index. A combined 3.8 million equity shares have changed hands on the counter on the NSE and BSE.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU