Tata Chemicals‘ share price continued to slump for the second straight session on Thursday after Morgan Stanley downgraded the stock’s rating.
What Happened: The stock turned ex-dividend yesterday, and also faced investors’ ire after it reportedly cut soda ash prices. Following detergent maker Nirma’s cue, that revised soda ash prices by ₹2,000/tonne, the Tata Group company is also said to have slashed soda ash prices by ₹2,300/ tonne. The company had declared a ₹17.50/share dividend.
Today, global research firm Morgan Stanley downgraded the stock’s rating to equal weight with a price target of ₹916. The firm noted that as the company ramps up soda ash production the segment’s fundamentals will soften up.
The firm highlighted that the postives from revised US contracts will be mitigated by a decline in unit margins in other geographies. The firm also cut its estimates for the company’s earnings in FY24 and FY25 by 5%and 6%.
Price Action: Tata Chemicals share price was down 1.43% to trade at ₹963.95 in the early hours of trading on Thursday.
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