Broker's Call: Tata Chem (Buy)

CMP: ₹691.95

Target: ₹876

Recently, the stock price of Tata Chemicals corrected by about 12 per cent from 52-week high of ₹787 despite reporting good set of numbers in the recent quarters.

Key takeaways: Tata Chemicals is a global company with businesses in inorganic chemicals, crop nutrition, crop protection and consumer products.

Tata Chemicals operates through four segments, viz, inorganic chemicals (soda ash, salt, sodium bicarbonate, marine chemicals, caustic soda and cement), fertilisers, other agri-inputs and others (pulses, spices, water purifier and nutritional solutions).

Tata Chemicals is the world’s second largest soda ash producer with combined capacity of about 4.2 million tonnes. With manufacturing facilities in India, UK, Kenya and the US, it is the world’s most geographically diversified soda ash firm.

Key risks: If current anti-dumping scheme placed against imports of soda ash is removed, it may have an adverse impact on Tata Chemicals.

As Tata Chemicals export to different countries, any adverse currency fluctuations will have significant impact on the company.

Tata Chemicals is exposed to many labour laws, environmental regulations and other factors for every country that it operates in.