Why This Tata Stock Is Sliding Today

Tata Chemicals’ share price slid down on Monday morning to snap its three-session gaining streak.

What Happened: The Tata Group company reported a 28% decline in consolidated net profit for the September quarter at ₹495 crore compared to the ₹685 crore in the same quarter last year. Revenue from operations also saw a decrease, falling to ₹3,998 crore in the July-September period, down from ₹4,239 crore posted in the year-ago period.

The net profits included an exceptional item of ₹102 crore. EBITDA for the quarter declined by 11%, reaching ₹819 crore compared to ₹920 crore year-on-year. EBITDA margin was at 20.5%. Earnings per share for the quarter was at ₹16.80.

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As of September 30, 2023, the consolidated gross debt dropped to ₹6,048 crore, compared to ₹6,296 crore as of March 31, 2023.

The managing director and CEO, R Mukundan, said in a statement that the demand environment for soda ash in domestic markets in India and the US was stable. However, softness was observed in other markets, especially in the container glass and flat glass sectors, leading to pricing pressure.

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Reacting to the results, Morgan Stanley maintained its “equalweight” rating for the stock with a price target of ₹1,028.

Price Action: Tata Chemicals’ share price was up 1.50% to trade at ₹950.50 as the markets opened on Monday

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Posted In: EarningsEquitiesNewsPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasTata ChemicalsTata Group