Tata Chemicals Q4 Results: Co in red after 9 years on one-time charge, poor soda ash demand
Synopsis
India's Tata Chemicals reported its first quarterly loss in nine years on Monday, hurt by a one-time charge incurred in its UK operations along with lower prices and demand of soda ash.
According to analysts at Emkay Research, prices of soda ash have fallen by 21% in the March-quarter from a year ago. The chemical is used to reduce the melting point of silica to produce glass, along with the soap and detergent industries.
Tata Chemicals is the world's third-biggest soda ash producer, according to its website and analysts at HSBC.
PEER COMPARISON Valuation(next Estimates (next Analysts' sentiment 12 months) 12 months) RIC PE EV/EBIT Revenue Profit Mean No. of Stock to Div DA growth growth rating analysts price yield (%) (%) * target** (%) Tata 28.64 12.49 -0.37 -20.64 Sell 7 1.27 1.56 Chemicals Ltd Deepak 32.96 21.16 12.41 29.56 Hold 15 1.08 0.30 Nitrite Ltd SRF Ltd 40.83 22.77 18.23 43.44 Buy 25 1.05 0.27 GHCL Ltd 6.13 3.73 7.44 4.24 Buy 1 0.81 3.29 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JANUARY-MARCH STOCK PERFORMANCE -- All data from LSEG -- $1 = 83.4433 rupees
(You can now subscribe to our ETMarkets WhatsApp channel)