Tata Chemicals shares fall over 4% on first-ever quarterly loss in nine years; Kotak Equities screams sell
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Shares of Tata Chemicals fell 4.5% to the day’s low of Rs 1,050 on BSE in Tuesday’s trade after the company reported its first-ever quarterly loss in nine years, hurt by a one-time charge incurred in its UK operations along with lower prices and demand for soda ash. Kotak Institutional Equities (KIE) recommended a ‘sell’ rating on the stock with a target price of Rs 770, which suggests a downside of nearly 29%. Tata Chemicals reported a consolidated net loss of Rs 850 crore in the quarter ended March 31, compared to a profit of Rs 709 crore a year ago. “The company reported weak earnings for 4QFY24, as expected, amid pricing pressure on soda ash across geographies. Earnings seem likely to remain near current run-rates through most of FY2025 in the context of continued oversupply; the large impairment charge in the UK is perhaps an indication,” said a report by Kotak Institutional Equities. The primary reason for the earnings to stay near ...