Tata Group Stock will give strong returns in the long term! Buy advice, the stock has jumped 20 per cent in 1 month

Tata Group Stock

Tata Group Stock will give strong returns in the long term! Buy advice, the stock has jumped 20% in 1 month

Tata Group Stock: Brokerage firm Nirmal Bang has given buy advice on Tata Chemicals. The brokerage is bullish on the company’s long-term outlook. However, some problems may remain in the near term.

Tata Group Stock: Brokerage firm Nirmal Bang has given buy advice on Tata Chemicals, the company’s company of chemicals, crop protection and speciality chemicals. The brokerage firm is bullish on the long-term outlook of the company. However, some problems may remain in the near term.

The company’s EBITDA margin is expected to be better than the 5-year average going forward. The company management is positive about the long-term prospects, but there are also concerns about cost pressures after the next two quarters. The stock of Tata Chemicals has jumped more than 33 per cent in the last 6 months despite the volatility in the market.

Tata Chemicals: ₹1267 target price 

Stock brokerage firm Nirmal Bang has maintained a buy on Tata Chemicals (TTCH) with a 10.6 per cent increase in the SOTP-based target price (₹1267 per stock). On August 29, 2022, the stock of Tata Chemicals closed at Rs 1137, up 2.37 per cent. In this way, a jump of about 11 per cent can be seen in the stock ahead of the current price.

Investors have received a return of about 36 per cent in the last year in the stock of Tata Chemicals. At the same time, so far this year, the stock has gained more than 24 per cent. The stock has gained about 20 per cent during the last month.

Tata Chemicals: What is the opinion of the brokerage 

Brokerage house Nirmal Bang says that there is a Tactical Momentum in the earnings. The long-term outlook for soda ash is bullish. Apart from the traditional use, there is a new demand for soda ash in solar glass as well as in lithium-ion batteries.

The company has current positive tailwinds in Basic Chemistry segment earnings, driven by strong demand for soda ash.

According to the brokerage report, the revenue growth in FY23E/FY24E may improve to 23.8%/9.0%. In this, the EBITDA margin may remain better at 23.5%/23.9% than the 5-year average (18.3%). On the other hand, the management is also cautious about the long-term prospects and keeps a positive stance.

However, the impact of the global recession may have an impact on the company. Volume and price may be affected.