Hi,
Stock has gained more than 50% in a month’s time.
Promoters(TATA sons) again have increased their stake in the company. Recent buy at 420 levels.
Apart from business environment improving there is some good news seems to be in our way,
Thanks,
Deb
Continuing the discussion from Tata Chemicals Ltd:
Hi there, Does anyone have more information about the readiness of this battery manufacturing plant in Dholera? I have done some search and i cannot find much information other than mention of it as upcoming capacity (timeline ranges from 2020 to 2021 depending on articles).
https://www.tatachemicals.com/operations/india/Our-facilities-india
A slight update, i have sent an email to TCL Investor relations, lets see if they bother to respond 
Is growing 5 times in 10-15 years enough?
10 to 15 year is a drastic 50 percent variation in timeline target… something not expected from a top notch management
Considering they meet the 10 year timeline, is 5 times a meaningful increase in overall revenue to make a significant impact on bottomline?
Some points to think upon, views invited
5x in 10 years is approximately 17% CAGR, seems okay to me considering it is a slow but steady grower with good dividends. It could be higher because he says at least 5 times. I don’t know much about margins of specialty chemicals but I assume they would be higher than overall margins, is that the case?
“5x in 10 years” would be the growth of the specialty chemicals division. Specialty chemicals is a new segment for them and so must contribute very less to the overall revenue. And so, just 5x growth won’t make this segment much larger to affect top-line significantly.
Yes, sorry I should have made it clear, I was talking about only the specialty chemical segment. The main issue is the company is not a fast grower in any segment.
Exactly! A new segment that too a sunrise one must grow exponentially with the right management and vision. Being Tatas and into chemicals, I am not sure how they ended up not creating high margin speciality chemicals etc. But creating an amazing brand of Tata Sampann. Hard for me to understand the DNA of Tata chemicals. Cannot write them off because of them being Tatas and history of creating iconic brands like Tata Salt and Sampann but cannot have full conviction so far because of sheer lagging behind in speciality chemicals in last decade.
Disc. Not a buy/sell recommendation. Hold tracking position and hence maybe biased.
Yeah it is definitely puzzling. I’m not invested but if I did it’d be purely for the consistent dividends.
I think the general market sentiment is that Tata group companies will do better under N Chandrashekaran, given all the recent reorgs. But I’m not sure if Tata Chem MD is ambitious, so it’ll probably continue to be steady performer unless the chairman directs otherwise.
Mukundan said that revenues of Rs 17,000 crore in next 4-5 years
What is the latest information about Tata chemical selected by ISRO for technology transfer on EV battery
Hi,
Results are out.
Basic Chemistry products vertical saw 5.6% yoy growth at Rs2,111cr. The specialty chemicals vertical saw 38% growth yoy to Rs519.63cr.
Their specialty chemicals business is growing pretty fast and now it contributes 20% of the total revenue.
However significant drop in operating profits due to high cost of raw materials. consolidated operating profits were down -59.7% at Rs91.17cr
Thanks,
Deb
No mentioning of EV battery in investor info. Any update.
Extract from link: Tata Chemicals has not finalized its foray in the Li-ion battery business, other than the existing small-scale recycling plant; no investments have been approved by the Board so far and any decision may be calibrated on domestic demand, policy incentives and technology tie-ups
https://www.zeebiz.com/market-news/news-tata-chemicals-share-price-kotak-downgrades-to-sell-156096
Since all the price action in past few months was based on the hope of foray in EV batteries, this news will be a big disappointment for the market. Without booster dose of new technology products, this is mundane commodity chemical (soda ash) company with 15% EBITDA margin, single digit ROCE and hardly any growth.
Disclosure : In watchlist due to EV battery foray.
What would be your thoughts on speciality chemicals segment growing at 38% this Q… EV battery segment foray is certainly a positive when it happens but I see they are focussing on other speciality segment also recently…
That’s true, but will take long time (2-3 years) for specialty product to make a positive contribution to the profitability of the company. So will need lot of patience from current price to get any meaningful return.
True, I think this new Tata group is very much focussed on profitable growth. I suspect they may not start EV battery manufacturing unless they see the economics of the business playing out in their favour. I think I would be ok knowing that it’s in their radar and they would venture only when they see it profitable and meanwhile focus on high margin speciality chemicals…now coming to why stock had run up so much I have no clue…was EV battery the major reason, not sure…because if that was then stocks of Exide etc. Who are definitely going to manufacture EV batteries should also be growing manifold…
