Moody's affirms Tata Chemicals' Ba1 rating; outlook stable

Moody's Investors Service has affirmed the Ba1 corporate family rating (CFR) of Tata Chemicals Limited (TCL). The rating outlook remains stable.

"The rating affirmation reflects the likely recovery in TCL's consolidated revenue and profitability from the trough during the pandemic fallout in the fiscal year ending March 2021. We expect the recovery to sustain over the upcoming 12 to 18 months, strengthening TCL's debt/EBITDA leverage to comfortably below 4.5x and EBITA margin towards 20%," says Kaustubh Chaubal a Moody's Vice President and Senior Credit Officer.

The stable outlook reflects Moody's view that TCL will sustain revenue growth across all its businesses, while maintaining its leading position in the global soda ash industry. In addition, the stable outlook continues to reflect Moody's expectation that TCL will retain its measured approach to growth and that it will prudently deploy its cash surplus in new EBITDA-accretive investments.

Shares of TATA CHEMICALS LTD. was last trading in BSE at Rs.748.95 as compared to the previous close of Rs. 748. The total number of shares traded during the day was 97564 in over 2861 trades.

The stock hit an intraday high of Rs. 754.7 and intraday low of 743.45. The net turnover during the day was Rs. 73071520.

Source : Equity Bulls

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