Tata Chemicals Q4 and FY24 results upcoming. How do you expect the market to respond to negative/okay-ish results with already "Undervalued" stock?

[truthseekerisabeau]

What do you people think about Tata Chemicals? The company has had good sales growth in last 2 FYs although last 2 quarters had negative growth + slight reduction in operating margins due to reduced demand of soda ash.

Interesting part is that TCL holds 2.53% stake in Tata sons (which during recent IPO news was rumored to be valued at $100 billion) which if taken at market value would significantly raise the book value of TCL.

The P/B ratio is currently 1.3 but if Tata Sons stake is considered then it would be

 

[jujus]

@truthseekerisabeau Its undervalued for a reason. Soda ash is a commodity with huge fluctuations in margins. Unlike a lot of other chemical companies where companies have some pricing power.

 

[chuckc249]

@truthseekerisabeau There needs to be growth from the core industry eventually.

Another example is Nazara, making money from acquisition but not their core, gaming apps.

 

[truthseekerisabeau]

@chuckc249 Tata sons have robust core operations! it's just that this year was relatively bad due to reasons out of their control...

 

[budsmama]

@truthseekerisabeau Cyclical companies will always be at a discount to secular growth stocks

 

[resjudicata]

@truthseekerisabeau Check out r/ShareMarketupdates for this type of daily updates

 

[resjudicata]

@truthseekerisabeau Check out r/ShareMarketupdates for this type of daily updates