Tata Chemicals Ltd. share price target

Revenue grew by 8.38% to Rs. 2769.12 Cr in Q1FY19 when compared to the previous quarter. Tata Chemicals Ltd Q1FY19 results Comment

We value TTCHs consumer business at 22x FY18 EBITDA (~30% premium to its trading EV/EBITDA), and TCO at 15x FY18 EBITDA (~15% premium to its trading EV/EBITDA). For an TGBL would have to issue 320.9m shares for TTCHs consumer business and 146.7m shares for TCO. However, for a shares to be issued would be 160.5m for TTCHs consumer business and 73.3m for TCO. Additionally, for 50% equity - 50% cash deal, TGBL would have to raise debt of INR43.4b for TTCHs consumer business and INR19.8b for TCO. TTCHs consumer business contributes ~41% to the overall revenue of the standalone entity and ~14% to consolidated revenue. However, given the high margin (~28%), high RoCE nature of the consumer business, we believe the business deserves valuations comparable to its peers, which is not being realized, as it is being consolidated with TTCHs commodities business.

Revenue decreased by 0.73% to Rs. 2555.08 Cr in Q4FY18 when compared to the previous quarter. Tata Chemicals Ltd Q4FY18 results Comment

Tata Chemicals (TTCH) is a 78-year-old commodities company, reinventing itself as a specialty and consumer products company. It has a diversified portfolio of businesses: (a)soda ash and sodium bicarbonate, where it enjoys global leadership, (b) fertilizers,which it is exiting from, (c) agricultural inputs, through subsidiary, Rallis India, (d)consumer products such as branded iodized salt, pulses and spices, and (e) a fledging specialty products business - materials such as highly dispersible silica (HDS) and nano material, and nutritional products like oligosaccharides and polyols. It also hassizable financial investments that it can liquidate to fund its growth.

Tata Chemicals Ltd Q3FY18 results comment Revenue decreased by 25.65% to Rs. 2573.91 Cr in Q3FY18 when compared to the previous quarter. On the other hand, it rose by 5.82% when compared with Q3FY17.

Tata Chemicals Ltd Q2FY18 results comment Revenue increased by 34.73% to Rs. 3461.88 Cr in Q2FY18 when compared to the previous quarter. Also, it increased by 2.42% when compared with Q2FY17.

Revenue decreased by 11.88% to Rs. 2572.37 Cr in Q1FY18 when compared to the previous quarter Revenue decreased by 11.88% to Rs. 2572.37 Cr in Q1FY18 when compared to the previous quarter

Revenue fell by 14.56% to Rs. 2919.27 Cr in Q4FY17 when compared to the previous quarter.

Revenue rose by 1.13% to Rs. 3386.07 Cr in Q3FY17 when compared to the previous quarter. On the other hand, it decreased by 12.76% when compared with Q3FY16.