BCCL
Shares of Tata Chemicals skyrocketed 135% in 2021 so far on a robust outlook for the chemical industry on the back of China plus one strategy, rising soda ash prices and power shortage in China.
“A 30%-50% rally in prices of soda ash, on a year-on-year basis, has boosted the prospects of Tata Chemicals, Purvesh Shelatkar, head of institutional broking at Monarch Networth Capital,” reportedly said.
A major chunk of the company’s revenue comes through the sale of basic chemistry products which includes soda ash. China is currently struggling with a severe shortage of power/electricity, which has forced industries to cut down on production and increased prices of chemical intermediates in the country.
Analysts expect the chemical industry stocks to outperform in the short to middle term and reflect in the companies’ earnings in the coming quarter. The market capitalisation of the company stood at ₹28,305 crore.