Tata Chemicals is a familiar company for Indian Investors.Considering the potential of Agriculture related sectors worldwide , this company deserves a position in the portfolio of any investor. Company is a leading manufacturer of Fertilisers and Soda Ash even in a global level.Through several acquisitions company has grown many fold in recent years. Company is also selling Iodised salt in different brand names like "TATA SALT','I-shakti''TOPP SALT'..etc.In the Fertiliser sector TCL manufacturing and selling Urea,Single super phosphates,Di-ammonium phosphate,Nitrogen phosphorous potassium complexes..etc The sharp rise in fertiliser prices in recent times is expected to help the company to post improved realisation in this sector.Company also having a joint venture with Ireland based Total Produce . Total Produce is the third largest fruit and vegetable distribution company in the world and Europe’s largest fresh produce provider.Through this joint venture company - named 'Khet Se '- Company offering fresh fruits and vegetables.As a brand extention , Tata Chemicals recently started selling pulses like chana, toor, urad and moong under the brand name I- Shakti.Along with its subsidiary Rallis India , Company is initiating a campaign called 'Grow More Pulses' as a knowledge sharing platform for farmers.Company's another initiative is 'The Tata Kisan Sansar'which is a network of about nearly 700 farmer resource centers that caters to more than 3.5 million farmers in 22000 villages in the northern and eastern part of India.Since it is not a micro cap and lot of reports are easily available about this company, I am not explaining much on this,but I feels this is the company from TATA group having maximum potential to grow in the next 10 year period.One should include it in your portfolio at CMP of Rs.328 and add more in any dip.
The stocks look overvalued at a PE of 23, low profit margins, inconsistent sales. Arvind
ReplyDeleteCompany is trading at a P/E of just 12.6 with an EPS of Rs.26 for the FY 2010-11 and not at a P/E of 23 as you mentioned above.
ReplyDeleteMoneycontrol data on tata chemicals:
ReplyDeleteMarket Cap 8358.55 * EPS (TTM) 14.45 * P/E 22.71 * P/C 14.60
* Book Value 186.08 * Price/Book 1.76 Div(%) 100.00% * Div Yield(%) 3.05
Market Lot 1000 Face Value 10.00 Industry P/E 14.04 - Arvind
Dear Arvind
ReplyDeleteMoneycontrol or CNBC is not the ultimate answer for everything in equity investment. If possible check with the company annual report itself for a broader picture.
Moneycontrol uses standalone data,Investors need to look at consolidated financials before making such comments.
ReplyDelete