Improving business outlook triggers rally in Tata Chemicals

Demand revival for soda ash and capacity expansion fuel optimism, say experts

Shares of Tata Chemicals have risen about 30 per cent this month after analysts upgraded earnings estimates to factor in improving outlook after the good December quarter (Q3) results. Though Q3 saw a decline in earnings, analysts take heart from the fact that it was ahead of estimates and recovery was better than anticipated. 

Net sales were flat at Rs 2,606 crore, while net profit declined 4 per cent over the previous year to Rs 161 crore, compared with the Street’s expectation of Rs 2,530 crore and Rs 101 crore, respectively. 

It was on the operational front that the firm reported a