OPEN APP
Home / Markets / Stock Markets /  Why Tata Chemicals share prices soared today - Explained

Tata Chemical share price today jumped 68.40 per equity share — logging near 9 per cent intraday gain in the stock market opening bell. According to experts, this sharp rise in Tata Chemical shares is due to the strong Q1 FY22 results in which the company has reported multi-fold rise in profitability. Experts said that this rise in profitability in June 2021 quarter of the company is due to the increase in soda ash business, which is expected to remain on the higher side in near future as well. They said that the counter has given a breakout at 780 and it can go up to 940 in next 6 months.

Reason for Tata Chemicals share price rise

Speaking on the reason for rise in Tat Chemical share price; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Tata Chemicals has reported strong Q1 FY 2021-22 results. It has reported multi-fold rise in its consolidate net profit of 342.33 crore against 74.15 crore in the corresponding period in FY21. Most importantly, this rise in profit is due to the rise in its soda ash business, which is expected to continue going northward as the product is mainly used in electric vehicle industry and in coming days its demand is expected to further go up. Since, soda ash is a major product of Tata Chemicals, bulls are favouring this stock for the last one year."

Tata Chemicals share price outlook

Advising Tata Chemical share holders to further hold the counter; Mudit Goel, Senior Research Analyst at SMC Global Securities said, "Tata Chemical share price has recently given a breakout at 780 and now it may go up to 870. So, those who have this stock in their portfolio, they are advised to hold the counter with trailing stop loss at 800."

On whether one can buy Tata Chemical shares; Mudit Goel of SMC Global Securities said, "One can buy the counter at around 820 maintaining stop loss at 780 for the six month target of 940."

Tata Chemicals reported 27 per cent rise in its income from operations as its Y-o-Y operational income grew from 2,348 crore to 2,977 crore. Tat Chemicals management maintained that this rise in operation income of the company is also due to the rise in volume of soda ash in the US and India.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout