Why Tata Chemicals stock zoomed 11% today

Shares of Tata Chemicals zoomed over 11 per cent today after the Tata Group firm announced a multifold rise in net profit for the quarter ended March 2022. Tata Chemicals' profit after tax stood at Rs 470.24 crore for the quarter ended March 2022 against Rs 29.26 crore in the year-ago period.  

Subsequently, the stock rose 11.37 per cent to Rs 1047.75 against the previous close of Rs 940.75 on BSE. The stock has gained after two days of consecutive fall. The stock opened 2.29 per cent higher at Rs 962.30 against the previous close of Rs 940.75 on BSE. 

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Tata Chemicals stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The large cap stock has gained 29.68 per cent in a year and climbed 15 per cent this year. Market cap of the firm rose to Rs 26,197 crore.

Total 5.69 lakh shares of the firm changed hands amounting to a turnover of Rs 58.34 crore. The stock hit an all-time high of Rs 1158 on October 18, 2021 and fell to a 52-week low of Rs 670.55 on May 6, 2021.  

At 12:12 pm, the share was trading 9.33 per cent higher at Rs 1028 on BSE.

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Consolidated income from operations climbed 32 per cent during the quarter under review to Rs 3,481 crore against Rs 2,636 crore in the corresponding quarter of the previous fiscal.

In the last fiscal, the firm's profit after tax on a consolidated basis zoomed 221 per cent to Rs 1,400 crore against Rs 436 crore in the year-ago period. Income from operations climbed 23.74 per cent to Rs 12,622 crore compared to Rs 10,200 crore in FY21.

The Tata Group firm operates through two business segments: Basic chemistry products and Specialty products. Its basic chemistry products business is engaged in the manufacturing of inorganic chemistry products and serves various industries, such as glass, detergents, pharma, biscuit manufacturing, bakeries and other industries.  

Its basic chemistry products consist of soda ash, sodium bicarbonate, salt and other products. Its specialty products consist of specialty food ingredients, such as prebiotics, formulations for feed, food and pharma customers, and specialty silica for rubber/tire industry.