Stock in Action-Tata Chemicals 10 October

Highlights

1. Tata Chemicals share price has gained over 4% year to date in 2024 including today’s gain.

2. Tata Chemicals financial performance has decreased over the past year with operating profit decreasing from ₹3,820 crore in March 2023 to ₹2,847 crore in March 2024.

3. Tata Chemicals quarterly earnings report highlighted a continuous fluctuation in net profit in the last 4 quarters.

4. For Tata Chemicals stock analyst forecasts positive trends for the future.

5. Tata Chemicals share price increased from ₹1000 to ₹1200 between September and October and the technical chart shows the stock consolidating near ₹1200.

6. Tata Chemicals stock has not outperformed the market by delivering just 14% returns in the last year.

7. Tata Chemicals is currently trading at ₹1200 showing a 6% increase as of 11:54 am on NSE.

8. Tata Chemicals is gaining momentum after receiving positive commentary from Axis Securities, which has issued a buy call on the stock with a target price of ₹1213.

9. Shares of Tata Technology Services, Tata Motors, Tata Chemicals and other companies in the Tata Group remained stable after the passing of their former Chairman, Ratan Tata on Wednesday.

10. As per the June quarter filings the company has a 37.98% promoter holding, 19.91% DII holding and 13.76% foreign institutional investor (FII) holding.

Why is Tata Chemicals Share in News?

Shares of Tata Technology Services, Tata Motors, Tata Chemicals and other Tata Group stocks remained stable following the death of Ratan Tata the former chairman of Tata Sons, on Wednesday. He was a respected Indian industrialist who passed away at the age of 86. Ratan Tata led the Tata Group for 21 years from 1991 to 2012 and during his tenure he significantly shaped modern Indian industry and positively impacted society.

Under his leadership, Tata expanded the conglomerate into one of the largest in India. He also supported several startups during their early stages including Urban Company, CashKaro, BlueStone, CarDekho and Tracxn helping them grow into successful companies. Ratan Tata’s legacy includes not only his business achievements but also his commitment to nurturing innovation and entrepreneurship in India.

Analyst View on Tata Chemicals

Axis Securities suggests buying Tata Chemicals shares within the price range of ₹1120 to ₹1098, with a stop loss set at ₹1072. They expect the stock to rise by 7% to 9%. According to their analysis Tata Chemicals has broken out of a Symmetrical Triangle pattern at the ₹1100 mark on the weekly chart showing a strong bullish trend.

Additionally, the weekly Relative Strength Index has moved above a downward trendline indicating strong price momentum. Axis Securities predicts that the stock could reach prices between ₹1185 and ₹1213. They recommend holding the shares for about 3 to 4 weeks.

Another brokerage has selected Tata Chemicals for a two month investment period giving it a buy recommendation. They have set a target price of ₹1290 which represents a potential upside of 16.71%. To manage risk they suggest a stop loss at ₹1045.

Tata Chemicals Financials

Tata Chemicals announced a 72% drop in its consolidated net profit, reporting ₹150 crore for the first quarter of the current fiscal year. This is a decrease from ₹532 crore during the same period last year. The company's total income also fell to ₹3,836 crore in the April to June quarter of 2024-25 down from ₹4,267 crore in the previous year. Additionally, total expenses rose to ₹3,621 crore compared to ₹3,527 crore in the same quarter last year.

About Tata Chemicals

Tata Chemicals is a leading global company in the chemicals and agricultural sectors, part of the Tata Group, one of India's largest and oldest conglomerates. Founded in 1939, Tata Chemicals specializes in producing a wide range of products including soda ash, sodium bicarbonate and specialty chemicals catering to various industries such as glass, textiles, food and personal care. The company is also involved in sustainable agricultural practices offering fertilizers and crop protection products to enhance agricultural productivity. With a commitment to innovation and sustainability, Tata Chemicals focuses on reducing its environmental impact through green chemistry and circular economy initiatives. The company has a strong presence in both domestic and international markets continually striving to adapt and grow in an ever evolving industry landscape while contributing to the Tata Group's legacy of ethical business practices.

Conclusion

Tata Chemicals is currently in the spotlight following the passing of its former chairman, Ratan Tata and has shown stability in its share price despite recent financial challenges. Analysts from Axis Securities are optimistic about the stock recommending a buy with a target price of ₹1213 and highlighting a bullish trend. Additionally, another brokerage has given a buy recommendation for a two month investment targeting ₹1290. With a positive market commentary, Tata Chemicals is positioned for potential growth in the near future attracting investor interest amid fluctuating quarterly earnings.