STOCK WATCH: Tata Chemicals

Tata Chemicals stocks has been attracting buying of late on the back of strong results expectations and possible merger with Rallis. The stock on Friday was up marginally to close at Rs 191.95. In the past one month, the stock has appreciated 13 per cent from Rs 169.95.

Tata Chemicals on Thursday announced impressive results for the first quarter ended June 30, 2005. The company posted a profit after tax of Rs 64.94 crore for the June quarter as compared to Rs 45.64 crore for the same period last year.

Market sources suggest that the Tata Chemical stock has been buzzing on rumours that the company may merge Rallis with itself. The merger will obviously strengthen the company's position in agro chemicals.

Tata Chemicals had failed to acquire an Egyptian Fertiliser company as it was outbid by its rivals. Tata Chemicals had through its wholly owned subsidary, Homefield International, made an open offer for constituting 100 per cent of the equity capital of the Egyptian Fertiliser Company. After the setback, the stock was back in reckoning with merger talks, brokers said.