Should you buy, sell or hold Tata Chemicals shares after Q1 results?
Tata Chemicals (TATACHEM) Share Price News, Q1 FY25 Results: Tata group chemical producer Tata Chemicals on Monday reported a weak set of financial results for the April-June period. Read on to know more on the latest earnings report from the Tata group firm.
Tata Chemicals (TATACHEM) Share Price News, Q1 FY25 Results: Tata Chemicals shares gained amid a market-wide rebound on Tuesday, a day after weak macroeconomic data from the world's largest economy sent shockwaves across global markets that sent the headline Nifty50 index tumbling by 2.7 per cent. Tata Chemicals shares eked out a gain of Rs 27, or 2.6 per cent, to Rs 1,078.6 apiece on BSE, after the Tata group chemical manufacturer's quarterly numbers fell short of analysts' expectations.
Here's all you need to know:
Tata Chemicals Q1 Results | PAT down 74%
After the market hours on Monday, Tata Chemicals reported a 74 per cent year-on-year fall in its net profit to Rs 135 crore for the June quarter.
Tata Chemicals Q1 Results | Revenue down 10%
Its June-quarter revenue declined 10.2 per cent to Rs 3,789 crore, according to a regulatory filing.
Tata Chemicals Q1 Results | Top-line & bottom-line below analysts' estimates
According to Zee Business research, the Tata group company was estimated to log a net profit of Rs 185 crore with revenue of Rs 3915 crore for the first quarter of FY25.
Here's what market wizard Anil Singhvi suggests
Zee Business Managing Editor Anil Singhvi expects support for Tata Chemicals futures coming in at Rs 1,010 and a higher level at Rs 1,085. He expects buying to emerge at the key support level.
The chemical maker's results are below expectations on all fronts but demand turned out to be stable, he points out.
The market guru also says...
The increase in Tata Chemicals' debt is not a good sign, according to the market wizard.
Rising debt at Tata Chemicals
Tata Chemicals' gross debt increased by Rs 813 crore during the quarter, taking its total debt to Rs 6,376 crore, according to the filing.
What should traders do?
Zee Business analyst Kushal Gupta suggests selling Tata Chemicals futures for a target of Rs 1,020 with a stop loss at Rs 1,065.
Tata Chemicals Shares | Historical performance
The Tata group stock has already fallen by more than five per cent in five days, highlights Gupta.
Tata Chemicals shares have risen about six per cent in the past six months, underperforming a 10.5 per cent rally in the headline Nifty50 index.
Tata Chemicals Q1 Results | Operating performance
Tata Chemicals registered Rs 574 crore in first-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA), down 45 per cent on a year-on-year basis. Its margin - a key measure of profitability - contracted by 960 bps to 15.1 per cent.
Zee Business analysts had pegged the chemical producer's quarterly EBITDA at Rs 605 crore and margin at 15.5 per cent.
Soda ash demand stable
Domestic demand for soda ash remained stable during the quarter owing to robust demand for flat glass, container glass as well as solar glass, according to the chemical manufacturer.