Tatva Chintan Pharma Management expects continued growth. The customer base of the company has increased. Product portfolio is good and supply is expected to increase.
Super Hit IPO: Brokerage houses are once again looking at the opportunity of earning in Tatva Chintan Pharma, which was a superhit IPO of the year 2021. Brokerage house ICICI Securities has given a target of Rs 3000 while recommending investment in the stock. The current price of the share is Rs 2348. That is, 24 percent return is possible in this stock compared to the current price. Let us know that the company’s IPO was included in the superhit issue of 2021. The company’s stock had doubled the investors’ money on debut itself. After listing, the share had increased by 175 percent in comparison to the issue price. However, now it has corrected significantly from the record high and is trading near the level of listing day closing. This issue got more than 180 times subscription.
More than 100% return on debut itself
The share of Tatva Chintan Pharma was listed on the stock market on 29 July 2021. Under the IPO, the company had kept the issue price of Rs 1083. Whereas it was listed at a price of Rs 2112 i.e. at a premium of 95 percent. As soon as the list was made, it got faster. On the listing day, it closed at Rs 2310 with a premium of 113 per cent. The stock touched a record high of Rs 2978 in January this year. However, right now the stock has corrected from the record high and has come to a price of Rs 2348.
Growth expected to be better going forward
According to brokerage house ICICI Securities, the management expects continued growth in Structure Directing Agents (SDAs). The customer base of the company has increased, due to which further growth is expected to be better. The supply of the company’s product is also expected to increase in developed markets for Euro-7. The company has high purity products and has also found applications for the semiconductor industry. Super-capacitor batteries are being launched commercially, which should accelerate the development of electrolyte salts. The company is already in the process of commercializing its product.
Maintaining Sustainable EBITDA Guidance
The company has maintained its Sustainable EBITDA guidance of 22-24% by Nov/Dec’22 and Dahej Plant is operational. The brokerage has cut its EPS estimates by 15 per cent for FY22 and 4-6% for FY23-24E by 15 per cent on lower SDA sales (on chip shortage). The company’s revenue and EPS CAGR for FY22-24E is estimated at 31 per cent and 28 per cent. The brokerage has given a buy advice giving a target of Rs 3000 for the stock.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
