Q4FY21 Result Update - Tata Chemicals - ICICI Direct

Q4FY21 revenues grew 11% YoY to Rs. 2636 crore, mainly due to 38% YoY growth (albeit on lower base) in speciality product segment to Rs. 519.6 crore. Basic chemical revenues grew 6% YoY to Rs. 2111.3 crore mainly led by 12% growth in India, while the US and Europe grew 1% and 5%, respectively. EBITDA margins declined 610 bps to 10.7% mainly due to one-offs, negative operational leverage and spillover of cost to Q4 from Q3 in US and EU. Ensuing EBITDA declined 29% YoY to Rs. 282.7 crore. PAT (excluding Rs. 6236.7 crore of profit from discontinued operation in Q4FY20) declined 94% YoY to Rs. 11.8 crore amid lower operational performance and higher tax rate.

Valuation & Outlook

We value the company on an SOTP basis and arrive a target price of Rs. 750 (earlier Rs. 490) including investment portfolio value. We maintain HOLD rating on the stock. Improvement in margins and revival in the demand scenario especially in the backdrop of second Covid-19 weave are key notable aspects, going ahead.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_TataChemical_Q4FY21.pdf

Shares of TATA CHEMICALS LTD. was last trading in BSE at Rs.708.3 as compared to the previous close of Rs. 782.85. The total number of shares traded during the day was 1032503 in over 30179 trades.

The stock hit an intraday high of Rs. 755.6 and intraday low of 704.6. The net turnover during the day was Rs. 749263755.

Source : Equity Bulls

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