Why This Tata Stock Is Sliding Over 2% Today

Shares of Tata Chemicals continued to trade lower for the second straight session as the company posted its earnings for the quarter ended June.

What Happened: The Tata Group company’s consolidated net profits for the period stood at ₹532 crore, down 8% from the ₹589 crore profit it booked in the year-ago period. The company’s revenue from operations went up 5.58% to ₹4,218 crore as compared to the ₹3,995 crore it reported in the same quarter last year. Both the topline and bottom line missed analyst estimates.

EBITDA for the quarter came in at ₹1,043 crore with a margin of 24.73%. Earnings per share for the quarter came in at ₹20.9. Commenting on the results, R Mukundan, Managing Director & CEO, Tata Chemicals, said, "The Company has delivered a satisfactory performance during Q1FY24 as compared to Q1FY23 despite a challenging environment. The soda ash prices got adversely impacted as many customers delayed their purchasing decisions due to new supplies expected from Inner Mongolia, China.”

Reacting to the results Morgan Stanley maintained its “equalweight” rating for the stock with a price target of ₹916. The research firm said that the company’s commentary on pricing and cost management would be a key point to watch in the earnings call.

Price Action: Tata Chemical’s share price was down 2.50% to trade at ₹1,013.20 as the markets opened on Tuesday.

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Posted In: EarningsNewsPrice TargetReiterationAnalyst RatingsTata ChemicalsTata Group