Tata Chemicals surges in volatile market

Tata Chemicals, part of Tata Group has gained by more than 9 per cent on an intraday basis on Aug 10 as at 1.54 pm.  Shares are trading at Rs 503.20. On the other hand, Sensex has breached the 27800 mark and is down by 286 points. In the last few months, the shares have surged by 23 per cent. 52-week High/Low stands at Rs 509/310.On Aug 10, company has informed bourses that it will sell its business and distribution of urea and customised fertilisers manufactured at Babrala in Uttar Pradesh, to Yara Fertilisers India Pvt Ltd., for Rs 2,670 crore. Yara India is a unit of Yara International ASA, which was founded in 1905 to deal with the emerging famine in Europe. At present, Yara has a worldwide presence, with close to 13,000 employees and trades with more than 150 countries. The company has a consolidated debt of Rs 8,694.25 crore as on March 31, 2016. The sale will make the balance sheet of company strong. The news has hyped the stocks on an intraday basis.

On Aug 5 the company had declared its Q1FY17 results. In Q1, company has reported a 32.34 per cent rise in net profits at Rs 279.65 crore for the quarter ending June 30, compared with the same period last year. However, the revenue in Q1FY17 has declined by 8.67 per cent to Rs 3,651.86 crore, against Rs 3,998.94 crore in the same quarter of the previous financial year.

Tata Chemicals Limited is an Indian multinational company with interests in chemicals, crop nutrition and consumer products, and headquartered in Mumbai. The company is one of the largest chemical companies in India with significant operations in India and Africa.