Shares of Tata Chemicals Ltd. rose for the 11th straight trading session on Thursday, scaling yet another record high. The gaining streak is the longest for the stock since December 2002 when it had risen for eleven straight days.
Promoter Tata Sons Pvt. Ltd. acquired 0.71% stake in the chemical products maker at Rs 420.92 per share, according to exchange data on Wednesday. Tata Sons held 35.47% stake in Tata Chemicals as on Sept. 30.
“With an increase in product approvals from pharma, as well as food grade companies, we expect the nutraceutical segment to grow in high teens in the coming years,” Mitesh Shah, analyst at ICICI Direct, had written in a post-earnings dated Oct. 31.
Shares of Tata Chemicals ended 6.6% higher at Rs 455.45 in today’s session. The stock has gained over 40% in the last 11 trading sessions.
Out of the 10 analysts that track Tata Chemicals, five have a ‘Buy’ recommendation, three say ‘Hold’ while two have a ‘Sell’ rating. The stock is trading 25% higher than its 12-month Bloomberg consensus price target of Rs 342.7.
“The expected demand recovery in real estate and auto sectors will drive soda ash demand in the medium term,” Sumant Kumar, analyst at Motilal Oswal, wrote in an post-earnings note. “The cash-cow business of soda ash and sodium bicarbonate is expected to remain relatively stable; cash generated from the business would be partially deployed towards the specialty chemicals segment.”
The Tata Group had consolidated its consumer business under one unit. The food business of Tata Chemicals was demerged to Tata Global Beverages, now known as Tata Consumer Products Ltd., in May 2019.