Buy at CMP - 775 , Targets - 845- 915, Time Frame - 5 - 12 Months, SL -
715
TRIGGERS
· Value Unlocking by getting debt free till FY20.
Tata Chemicals is in talks for the sale of fertilizer business and investments and
to be net debt free by FY20, while RoCE will also improve considerably.
Going forward, it sees revenue and net profit to grow at a CAGR of 9/22 percent
over FY18-20.
· Very Strong Results
Expected with 100% jump in YOY profits, 4 times EPS Increase expected. Its Q3
profit soared 3-fold to Rs 7.6 bn on gains from US biz
· The company is the
world's second-largest producer of soda ash.
· Tata Chemicals to
acquire Allied Silica for Rs 123cr to facilitate growth of the specialty Silica
business. This agreement includes the acquisition of an existing manufacturing
site in Tamil Nadu, which will produce Highly Dispersible Silica (HDS). The
specialty chemical product represents a downstream value addition to Tata
Chemicals soda ash business, where it ranks among the top manufacturers
globally.
· Budget Beneficiary
being into crop nutrition and agribusiness segments it stands to benefit
directly in the near term.
A part of the over
$100 billion Tata Group, Tata Chemicals Limited is a global company with
interests in businesses that focus on essentials for LIFE: Living, Industry and
Farm Essentials. The company is the world's second-largest producer of soda ash. They
have manufacturing facilities in India UK USA the Netherlands and Kenya with
global capacity of around 5.5 MTPA. They are also a leading player in the
consumer products and crop nutrition and agribusiness segments.Tata Chemicals
(TCL) is the second largest producer of soda ash in the world. It is India's
market leader in the branded and iodised salt segment as well as in urea and
phosphatic fertilisers. Established in 1939 at Mithapur in the Indian state of
Gujarat, TCL has, over the last few years, invested in increasing its stake in
the global soda ash business. It has acquired UK-based Brunner Mond group and
American company General Chemical Industrial Products Inc, making the
conglomerate the second largest soda ash producer in the world.
Tata Chemicals operates in the sectors
of consumer products, industry chemicals, agri-solutions and nutraceuticals.
Consumer products
Through its portfolio of Living Essentials, the company has positively
impacted millions of people in India. The Tata Salt brand is a market leader in
India's branded iodised salt segment, and is a part of the everyday life of
over 600 million consumers. The brand has two other variants: Tata Salt Lite
(low sodium salt) and Tata Salt Plus (iron-fortified salt).
With the introduction of Tata Swach, an innovative, low-cost and
nanotechnology-based water purifier, TCL provides affordable and safe drinking
water to the people. Tata Swach offers complete water purification solutions
through its range of non-electric, UV and RO purifiers.
Extending its portfolio from salt to other food products in 2010, TCL
unveiled India's first national brand of pulses, Tata Sampann (formerly called
I-Shakti). Through this brand, the company aims to provide a wholesome
farm-fresh source of daily protein to the Indian thali (Hindi for plate).
Industry chemicals
Under the umbrella of Industry Essentials, TCL produces products which
serve as essential inputs to diverse industries such as glass, detergents,
sodium silicate, textiles, food, feed, mining and chemical processing. TCL is
the world's second-largest producer of soda ash, with a global capacity of 4.3
MT per annum, with manufacturing operations in India, USA, UK and Kenya.
The company also manufactures sodium bicarbonate at Mithapur, India, and
in UK, which is used by industries such as pharmaceuticals, food, feed, dyes,
flue gas treatment and textiles. TCL is the fourth-largest producer of sodium
bicarbonate, with a combined capacity of about 0.2 MT per annum.
The allied chemicals manufactured by the company include caustic soda,
liquid chlorine, liquid bromine and gypsum. TCL manufactures various grades of
industrial salt at its UK facility. Its various grades include undried vacuum
salt, pure dried vacuum salt, water-softening products, de-icing salt products
and bespoke products.
The cement plant at Mithapur, India, was set up to consume solid waste
generated from the manufacture of soda ash. This plant has an installed
capacity of 1,500 tonnes per day and produces two varieties of cement – OPC
grade 53 and masonry cement – under the Tata Shudh brand.
Agri-solutions
TCL has carved a strong position in India as a provider of
agri-solutions. Under the Farm Essentials segment, the company offers farm
inputs, such as fertilisers, pesticides, speciality nutrients, seeds and
agri-services, which are required to improve crop health and productivity.
TCL is one of the
leading manufacturers of urea and phosphatic fertilisers, and is a key player
in the growing segment of speciality fertilisers. The fertiliser range is
marketed under the flagship brand of Tata Paras, which enjoys highest brand
equity in its core geographies. TCL also produces customised fertilisers that
provide balanced nutrition to the soil. These are sold under the Paras Farmoola
brand. TCL's agri-products are produced at its Indian facilities at Babrala and
Haldia (total capacity of 130,000 MT).
Through the Tata Kisan Sansar (TKS) network, TCL
offers special services to farmers, such as information on new and improved
agronomic practices and use of agricultural inputs. TKS is a network of nearly
900+ farmer resource centres that caters to more than 2.6 million farmers
across 26,000 villages in the northern and eastern parts of India.
Nutritional solutions
In line with TCL's focus on health and nutrition, the company has
developed a range of nutritional solutions under the Sustentials™ brand. A new
age venture of TCL, it is driven to inspire healthy living and address nutrition
needs of the modern consumer.
With R&D strength, manufacturing expertise and formulation know-how,
Tata Chemicals' nutritional solutions business offers innovative ingredients
and solutions under Wellness Foods' and 'Nutraceuticals' catering to food,
beverage, nutra and pharma industry. TCL's flagship set of prebiotic products—
and Gossence™ —are known to improve gut health by promoting the growth of good
bacteria.
Shareholders - Foreign Institutions Holding 11% with NBFC's and
Mutual Funds holdings of 24.8 %
|
Category
|
No. of shares
|
Percentage
|
|
Promoters
|
78,472,357
|
30.80
|
|
NBFC and Mutual Funds
|
63,190,802
|
24.80
|
|
General Public
|
45,981,820
|
18.05
|
|
Foreign Institutions
|
28,219,933
|
11.08
|
|
Others
|
19,648,328
|
7.71
|
|
Financial Institutions
|
19,171,167
|
7.53
|
|
Central Government
|
71,871
|
0.03
|
Stock is Trading near Its 52 Week High of 787 and Ready to make a
New High
National Aluminium Company Ltd
Buy at CMP- 78, Target-90-110, Time frame 7 to 18 Months, SL - 66.5
|
Category
|
No. of shares
|
Percentage
|
|
Promoters
|
1,263,412,563
|
65.36
|
|
Financial Institutions
|
291,017,303
|
15.06
|
|
Foreign Institutions
|
127,274,472
|
6.58
|
|
Others
|
121,420,253
|
6.28
|
|
General Public
|
68,442,296
|
3.54
|
|
NBFC and Mutual Funds
|
61,361,997
|
3.17
|
National Aluminium Company Ltd.,
incorporated in the year 1981, is a Large Cap company (having a market cap of
Rs 17976.24 Crore) operating in Metals - Non Ferrous sector.
For the quarter ended , the company has
reported a Standalone sales of Rs 1802.69 Crore and Company has reported
net profit after tax of Rs 128.94 Crore in latest quarter.