Tata Chemicals Shares Surge 14% to Reach 52-Week High of Rs 1,349 on NSE in Morning Trading on March 7, Extending Gains for Sixth Consecutive Session.
Tata Chemicals Stock Rally Continues Following Fitch Ratings Affirmation of Long Term Foreign Currency Issuer Default Rating (IDR) at BB+. Outlook Revised to ‘Stable’ from ‘Positive’.
As of 9:49 am, Tata Chemicals is trading 7.6% higher at Rs 1,269 on the National Stock Exchange (NSE).
Over the past five sessions, the stock has surged by 33%. Additionally, Tata Chemicals has gained 25% over the past year, aligning with the benchmark Nifty’s gains.
The rapid gains in the stock price has enhanced the appeal of the stock, drawing attention from investors, analysts said.
It is imperative to exercise caution due to the significant resistance looming around Rs 1,200-1,205, primarily identified through the presence of a previous historical high depicted in the chart analysis, said Jigar S Patel of Anand Rathi Shares & Stock Brokers.
“Therefore, initiating fresh long positions at this juncture is not advisable. For individuals who have already entered the market, it is prudent to consider booking profits and adopting a wait-and-see approach, anticipating a meaningful correction in the stock’s price before contemplating further investment actions,” Patel said.
For the quarter ended December 2023, Tata Chemicals reported a 60 percent on-year drop in net profit at Rs 158 crore amid tepid demand across key regions and segments. The Tata Group chemical firm’s revenue fell more than 10 percent to Rs 3,730 crore.
Tata Chemicals is the world’s third-largest soda ash producer. Fitch Ratings expect the company’s Ebitda (earnings before interest, taxes, depreciation, and amortisation) net leverage to average 2.2x over FY25-FY27 and be commensurate for its rating, driving the “stable” outlook despite the near-term industry pressures.
The margins will improve to 17 percent from FY26, supported by a gradual demand recovery, supply tightening, and lower energy cost. However, a prolonged period of unfavourable economic conditions and supply glut in the industry could limit margin improvement, Fitch Ratings said.
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