Tata Chemicals reports 61% net profit growth in Q4, Board declares ₹17.50 per share dividend
3 min read 03 May 2023, 05:03 PM ISTIn today's closing session, Tata Chemicals, a large cap company, had a market cap of ₹25,273.10 Cr.
PremiumIn today's closing session, Tata Chemicals, a large cap company, had a market cap of ₹25,273.10 Cr. The corporation is the third-largest manufacturer of soda ash and sodium bicarbonate in the world, as well as being the largest saltworks in Asia.
“The Board has recommended a dividend of ₹17.50 per share i.e. 175% for the financial year 2022-23 subject to the approval of the shareholders at the ensuing 84th Annual General Meeting of the Company," said Tata Chemicals in a stock exchange filing today while declaring its Q4 results.
During Q4FY23, the company’s consolidated revenue from operations stood at ₹4,407 Cr, up by 26.60% YoY from ₹3,481 Cr during Q4FY22, whereas in FY23 its revenue from operations stood at ₹16,789 Cr compared to ₹12,622 Cr in FY22.
The company’s consolidated net expenses reached ₹3,809 Cr during Q4FY23 as against ₹3,098 Cr in Q4FY22 whereas in FY23 the net expenses stood at ₹14,265 Cr as compared to ₹11,426 Cr during FY22.
During Q4FY23, the consolidated net profit of Tata Chemicals reached ₹709 Cr, up by 61.87% YoY from ₹438 Cr during the year-ago quarter, whereas in FY23 its net profit stood at ₹2,317 Cr compared to ₹1,258 Cr during FY22.
The consolidated EPS of Tata Chemicals reached ₹27.91 during Q4FY23 as against ₹18.17 during Q4FY22.
Aman Soni, head of operations, Prudent Equity said “The company has released a strong set of results. Performance has been quite robust globally, with the USA leading the pack with an increase of over 50%. Their main product, soda ash, has a promising future thanks to more recent uses in lithium and solar glass. However, in the medium term, we will see newer capacities from global players, which will put pressure on the realisations. New Soda Ash production capacity is being developed by Solvay in the USA. We are hearing reports of additional capacity in China as well. The demand outlook in the US, which generates about 35% of the business's sales, is likewise unpredictable at this time for a variety of reasons, including the ongoing rate hikes, banking crisis, inflation led slowdown etc."
V.L.A Ambala - founder - Stock Market Today said Tata Chemicals is one of the leaders in its sector. And one should keep in mind that the Indian chemical industry is projected to grow at a CAGR of 9.30 per cent between 2021 and 2026, which presents a positive outlook for the company's long-term view. This company has a good brand value however It is important for investors to evaluate the company's financials thoroughly before making investment decisions, and should understand that key triggered points of exits too. It had delivered a negative 5.9% Return in 1 year and almost 29% in 5 years. It has a good market cap of over 24000 Cr."
Key Levels to be. Noticed in the near term according to V.L.A Ambala
Previous 820-25 was a resistance range for price which is now acting as a support area.
Immediate support for this stock is 880 and major support for this stock is 850-805. Strong buying zone.
Price is currently trading at 20 EMA at a monthly time frame. Long & mid-term investors may see this as an opportunity to enter and encash upcoming movement.
Possible Target in the near term 1030/1120/1200/1240/1300
Meanwhile, Indian equity indices extended their fall for the second session after a positive opening however according to me it's just a pullback before further upside moves. The domestic indices were pulled down today due to weakness in international banking news and fear of a FED rates hike, unemployment data and energy stocks.
The shares of Tata Chemicals closed today on the BSE at ₹992.05 apiece level, up by 2.04% from the previous close of ₹972.25. The stock touched a 52-week-high of ₹1,214.65 on (11/10/2022) and a 52-week-low of ₹773.90 on (01/07/2022). Commenting on the technical outlook of the stock A R Ramachandran, Co-founder & Trainer-Tips2trades said “Tata Chemicals looks bullish on the Daily charts and a close today above resistance of 980 has opened up the possibility of higher targets of 1030-1043 in the near term. Support will be at 968."
