ICICI Securities has given Buy recommendation for Tatva Chintan Pharma Chem recommended buy rating on the stock with a target price of Rs 3000 in its resear with a target price of Rs. 3000 in its research report issued on Apr 06, 2022
ICICI Securities research report on Tatva Chintan Pharma Chem
We hosted promoters of Tatva Chinta Pharma Chem – Mr. Chintan Shah and Mr. Shekhar Somani for investors meeting. The management expects growth in SDAs to continue, and opportunities are increasing for emission control beyond transport vehicles. Tatva Chintan should grow faster from new customer wins, and likely supply to developed market for Euro-7. It has cracked products that are high in purity, and has found application in semi-conductor industry. Supercapacitor batteries are being commercially launched which should drive growth for electrolyte salt. PASC will benefit from the knowledge of continuous flow chemistry, and the company is already in the process of commercialising products. It has reiterated its sustainable EBITDA margin guidance of 22-24%, and Dahej plant commissioning by Nov/Dec’22.
We have cut our EPS estimates by 15% for FY22 on lower SDA sales (on chip shortage) and by 4-6% for FY23-24E. We forecast revenue / EPS CAGR of 31% / 28% over FY22-24E. Accordingly, we cut our target price to Rs3,000 (from Rs3,110, 40x FY24E EPS). Maintain BUY. Our estimate does not completely capture the rising opportunities in semi-conductor industry and PASC.
At 16:01 hrs Tatva Chintan Pharma Chem was quoting at Rs 2,331.35, down Rs 18.20, or 0.77 percent.
It has touched an intraday high of Rs 2,370.00 and an intraday low of Rs 2,320.00.
It was trading with volumes of 3,291 shares, compared to its thirty day average of 3,405 shares, a decrease of -3.33 percent.
In the previous trading session, the share closed up 0.74 percent or Rs 17.35 at Rs 2,349.55.
The share touched its 52-week high Rs 2,975.55 and 52-week low Rs 1,083.00 on 03 November, 2021 and 27 July, 2021, respectively.
Currently, it is trading 21.65 percent below its 52-week high and 115.27 percent above its 52-week low.
Market capitalisation stands at Rs 5,167.45 crore.