Mar'25 View on Tata Chemicals Ltd

Tata Chemicals Ltd manufactures and exports basic chemistry and specialty products. The stock is witnessing continuous pressure and weakness due to following reasons. • Consolidated revenues fell 4% yoy and 10% qoq, missing our estimate by 5%. • The US, UK and Africa operations all reported weak earnings, as did Rallis. • Management pointed at pricing pressure across regions yoy. • Pricing pressure is likely to persist in the near term amid aggressive exports. • Certain new capacities being added across regions, including India, China and the US. • Reported lower earnings due to margin pressures across its international operations. • Management indicated continued pressures for at least 3-6 months. • Management believes prices to eventually recover off the currently depressed levels, which it believes are below the cash cost of production in China.