Tata Chemicals is the top gainer on August 10

The stock has rallied as it delivered a stellar Q1 FY23 result.

After two positive consecutive sessions, on August 10, the market is trading in red. At 12:42 am, the S&P BSE Sensex is trading 0.17% higher at 58765.

On the sectoral front, only financials and capital goods are trading positively, with the IT sector being the top loser today.

About stock-specific action, Tata Chemicals is among the top gainers. The stock has surged 13.14% and is trading at 1082.9. The stock is rallying today as the company announced an excellent Q1 FY23 result yesterday after the market close.

The company’s income from operations grew by 34% YOY from Rs 2978 crore in the June quarter of FY22 to Rs 3995 crore in Q1 FY23. The PAT number also increased significantly by 87.43% YOY from Rs 342 crore in Q1 FY22 to Rs 641 crore in Q1 FY23.

EBITDA margin also grew to 25%, as against 20% in Q1 FY22. This margin improvement is impressive as the June quarter witnessed higher input and energy costs.

Tata Chemicals is involved in the business of manufacturing inorganic chemical products. It is the world’s third largest soda ash producer and Asia’s largest salt works operator which is spread over 36,000 acres.

The company has 13 manufacturing plants, 3 R&D facilities, and over 4600 employees working across 4 continents- Asia, America, Europe, and Africa.

The company belongs to S&P BSE group ‘A’ and has a market capitalisation of Rs 26366 crore.

As per the June quarterly ending, the company has an ROE, ROCE, and dividend yield of 7.58%, 8.4%, and 1.22%, respectively.

About the shareholding pattern, 37.98% is owned by the promoter, FIIs and DIIs together hold 34.13%, the government own 0.03%, and the rest 27.86% is held by the non-institutional investors.

The stock has a 52-week high and low of Rs 1158 and Rs 773.9, respectively. The stock is trading at a PE multiple of 16.8x.