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TATACHEM Consensus Forecast

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Average Consensus Forecast
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TATACHEM Price Target Potential

Nirmal Bang931-10.50%


Long term TATACHEM rating by FrontPage users
4.6/5 (7 Ratings)

3 TATACHEM share price target reports by brokerages below. See what is analyst's view on TATACHEM share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
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TATACHEM Share Price Target

TATACHEM Share Price Target - Broker Reports - 2021

Price @ Call: 893
Target: 931
Price @ Call: 698.75
Target: 750
Price @ Call: 805.1
Target: 563

TATACHEM Share Price Target - Broker Reports - 2020

Price @ Call: 490.22
Target: 490
Price @ Call: 305.51
Target: 404
We expect TTCH to deliver revenue/EBITDA at CARG of 7%/8% over FY20-22E. Soda Ash plants are operational across geographies, although at lower utilization levels (excluding the UK which is running at optimum utilization). This is likely to weigh down the company’s performance in the near term. On the other hand, lower energy prices should aid operating performance. TTCH is incurring capex of INR24b at its Mithapur plant for various categories, which should come on-stream in a phased manner. The cash-cow business of TTCH – Soda Ash and Sodium Bicarbonate – is expected to remain steady (over the medium-to-long term). Cash generated from these businesses would be partially deployed toward the Specialty Chemicals segment. The company is trading at an implied EV/EBITDA of 5.8x/4.9x FY21/FY22E (adjusted for the market cap of Rallis India and quoted investments of TTCH). We value the stock on SOTP basis to arrive at a target price of INR404. Maintain Buy.
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Price @ Call: 282.64
Target: 216
We have increased our earnings estimates across EBITDA and PAT levels to align our cost and margin assumptions in line with FY20 results. This still implies a flat trend in EBITDA and a marginal decline in EPS over FY20-22, with a material 43.5% slide in FY21E earnings YoY. We have also raised our working capital cycle assumptions as we see an increase in the cash collection cycle in FY20 accounts. The increase in net debt in FY20 nullifies the impact of the increase in our earnings estimates and has led to reduction in the equity value on our EV/E method used to value the chemical business. We have marginally trimmed our TP by 2% post our earnings revision after the 4QFY20 results call to Rs216. This implies 22% downside from CMP for the TTCH stock.
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Price @ Call: 317.01
Target: 360
We value the domestic soda ash business at 5x FY21E EV/EBITDA and overseas at 4x EV/EBITDA. We arrive at a target price of Rs 360, excluding investment portfolio value, providing an upside of 14% over CMP of | 316. We have a HOLD rating on the stock.
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Price @ Call: 750.2
Target: 897
Price @ Call: 665.1
Target: 798
The company is stressing on its growth plans for Bicarb, which enjoys higher margins and growth prospects, especially in the Pharma segment, and flue gas treatment. The company expects the ongoing new investments in Nutraceuticals, Silica and Mithapur expansion to improve top line and earnings from FY22 onwards. We also learned that the full impact of the Soda Ash and Bicarb expansion in Mithapur and Bicarb expansion in UK is likely by FY24. We maintain Buy on Tata Chemicals based on our TP of Rs798 (+20.1% upside from CMP).
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TATACHEM Share Price Target - Broker Reports - 2019

Price @ Call: 634.57
Target: 758
The company’s cash-cow businesses (soda ash and sodium bi carbonate)are likely to remain steady given the prospects of a balanced demand-supply scenario. Cash generated from the same would be partially deployed toward its specialty chemicals segment which earns high margins and RoCE. We thus reiterate our Buy rating on the stock as the residual business is available at a 27%/38% (FY20/21) discount (on EV/EBITDA) to its global peers.Basedonourscenarioanalysis,ifwevalueTTCH’sresidualbusinessEBITDAat 6x (in line with global peers), the potential upside in CMP is 30%. WederiveanSOTP-basedtargetpriceofINR758–impliedEV/EBITDAof8.5x. Our TP implies an upside of 20%.
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Price @ Call: 658.18
Target: 811
In 2016, the company sold off its fertilizer business. In 2019, it carved out a plan to demerge its consumer business with a clear strategy to focus on basic and the specialty chemicals business. Additionally, TTCH is incurring capex of INR24b at its Mithapur plant for various categories, which is expected to come on stream by FY22 (in a phased manner). The cash-cow business (soda ash and sodium bicarbonate) of TTCH is expected to remain steady due to potential balanced demand-supply scenario; the cash generated from the same would be partially deployed toward its specialty chemicals segment, which is high margin and return accretive. Our SOTP-based target price of INR811 implies an upside of 25%. Maintain Buy.
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Price @ Call: 641.3
Target: 798
We maintain Buy on Tata chemicals based on our TP of Rs798 (+26.6%upside form CMP) post the 2QFY20 results that came in line barring the tax write backs that offset the lower other income. PAT came in 21% above our estimate as tax expense was 67% below our expectation. Based on our SOTP valuation, we are marginally raising our TP by 7.3% to Rs798 purely due to consumer business valuation, which is based on swap ratio (1.14:1) of Tata Global Beverages at TGBL CMP. Overall, the company is on track on its Mithapur expansion plan and the commercial start ups in nutraceuticals as well as special grade silica expected by end FY20. The investments in nutraceuticals and silica will likely support revenue growth and returns based on management guidance of asset turn of 1.7-2x the overall capex of Rs5-6bn on these two product lines. Management is also looking to invest Rs2.5- Rs2.7bn on lithium battery and active ingredients business aimed at a capacity of 8GW to kick off its entry into the energy business. The company is hoping to improve overall returns in its core chemistry business and expects this to get a further fillip from the investments planned in energy, nutritional science and materials. The company also highlighted plans to improve ROCE in its core chemicals operations overseas, especially from its UK business based on increase in higher value sodium bicarbonate as a forward integration from the soda ash produced there.
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Price @ Call: 596.5
Target: 690
We value TCL India’s basic chemical at EV/EBITDA of 5x FY21E and the ROW basic chemical at EV/EBITDA of 4x FY21E, translating into a fair value of basic chemical business at Rs 272/share. Apart from this, other businesses with investment in group companies account for another | 123/share leading to a residual business target price of Rs 395/share. Adding consumer business value of Rs 295/share (1.14 x TGBL CMP), we arrive at a target of Rs 690/share, a potential upside of ~16%. We have a BUY recommendation on TCL.
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Price @ Call: 579.06
Target: 531
Taking into account company’s expansionary plans and restructuring of business, we expect earnings to grow at 11.6% CAGR over FY19-21E. However, execution risk and uncertainty around demand will be key concerns. Given 7% downside to current prices, we downgrade our rating to REDUCE with a target price of Rs. 531 based on 10x FY21 EPS.
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Price @ Call: 581.49
Target: 750
We have a Buy rating with TP of Rs750 (including consumer segment) and adjusted TP of Rs454/sh (ex-consumer).TTCH adjusted TP Rs 454/sh on ex-consumer looks cheap at 9.65x FY21 PE on EPS (Rs 47/sh). As we progress towards the demerger of the consumer business expected over the next one year, we expect investors to value this stock on its chemicals and specialty segment earnings. Risks to our call include slowdown in soda ash demand, the narrowing deficit in India on recent capacity additions and long gestation investments on new initiatives like lithium ion batteries which may take time to impact earnings.
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Price @ Call: 617
Target: 750
VALUATION LOOKING CHEAP – TTCH trades at 11x PE and 6.5EV/E FY21E on our base case, including consumer. On an ex-consumer basis TTCH trades at 6.61x PE and 3.99 EV/E on pro-forma FY21E (on CMP adjusted for ex-consumer). Moreover, over the next five years the stock looks even cheaper at 3.1 EV/E on FY24E pro-forma ex-consumer.
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Price @ Call: 637.8
Target: 749
Chemical Giant Leveraged To Soda Ash Upcycle. Tata Chemicals (TTCH), an Indian salt and soda ash giant, is navigating through new waters as it seeks fresh pastures. The recent decision to hive off its consumer business is positive as this transforms TTCH into a focused chemicals and specialties company. The growth from specialties including, nutrition, and silica, will likely gather momentum from FY21 based on new capacity being set up at a cost of Rs5.7bn. The crop protection chemicals (CPC) subsidiary, Rallis India, is the weak link that could surprise on the upside based on its impressive portfolio including new products launched in the past two years. Sustained operational gains, cost leadership, and high capacity utilization should support healthy EBITDA margin in TTCH’s chemistry products. We expect a re-rating in the stock based on volume growth prospects in chemicals and specialties, after the Rs 24bn capex. We initiate coverage on TTCH with a Buy rating and a SOTP-based target price of Rs749, up 17.8% from the current market price.
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Price @ Call: 557.5
Target: 703
On account of the continued subdued performance of Europe (TCEHL), we cut our earnings estimate for FY20/21 by 3%/6%. The company is showing signs of revival and we expect operational performance to pick up from FY20 onwards. However, earnings growth is expected to remain muted in FY20 owing to higher tax rate and lower other income. We value the stock on an SOTP basis (FY21E) arriving at a TP of INR703 which implies 26% upside. Maintain Buy.
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Price @ Call: 594
Target: 771

TATACHEM Share Price Target - Broker Reports - 2018

Price @ Call: 695.01
Target: 933
Price @ Call: 683.45
Target: 956
Price @ Call: 756.32
Target: 764
Price @ Call: 662.67
Target: 957
Price @ Call: 711.65
Target: 959
Price @ Call: 689
Target: 876
Price @ Call: 726.73
Target: 941
Price @ Call: 690
Target: 820
Price @ Call: 690
Target: 940
Price @ Call: 730.85
Target: 878

TATACHEM Share Price Target - Broker Reports - 2017

Price @ Call: 614.5
Target: 800
Price @ Call: 601.05
Target: 630
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  • TATACHEM Share Price Target Today- Technical Pivot Points (Classic)

    Upside Target 31,081.58
    Upside Target 21,058.12
    Upside Target 11,043.68
    Downside Target 11,005.78
    Downside Target 2982.32
    Downside Target 3967.88
  • TATACHEM Share Price Target weekly- Technical Pivot Points (Classic)

    Upside Target 31,202.6
    Upside Target 21,126.45
    Upside Target 11,077.6
    Downside Target 1952.6
    Downside Target 2876.45
    Downside Target 3827.6
  • TATACHEM Share Price Target monthly- Technical Pivot Points (Classic)

    Upside Target 31,083.93
    Upside Target 21,017.97
    Upside Target 1956.08
    Downside Target 1828.23
    Downside Target 2762.27
    Downside Target 3700.38
  • TATACHEM Share Price Target today- Technical Pivot Points (Fibonacci)

    Upside Target 31,058.12
    Upside Target 21,043.64
    Upside Target 11,034.69
    Downside Target 11,005.74
    Downside Target 2996.79
    Downside Target 3982.32
  • TATACHEM Share Price Target weekly- Technical Pivot Points (Fibonacci)

    Upside Target 31,126.45
    Upside Target 21,078.7
    Upside Target 11,049.2
    Downside Target 1953.7
    Downside Target 2924.2
    Downside Target 3876.45
  • TATACHEM Share Price Target monthly- Technical Pivot Points (Fibonacci)

    Upside Target 31,017.97
    Upside Target 2969.13
    Upside Target 1938.96
    Downside Target 1841.28
    Downside Target 2811.11
    Downside Target 3762.27
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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