Detailed analysis on TATACHEM, a good opportunity to buy ?
Hello traders,
As market crashed, many stocks have given good downfall from ATH (All time high).
We should look at it as an advantage to accumulate fundamentally good stocks for long term.
Chemical and fertiliser stocks have also given a good retracement with the market.
TATACHEM, one of the good fundamentally strong chemical company has corrected 27% from All Time High.
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On the chart, I have provided the Price action analysis and entries on it. Here is a note of fundamental analysis on TATACHEM.
A short description of the company:
Tata Chemicals engages in the manufacture of inorganic chemistry products with plants spread across four continents America, Europe, Africa and Asia. We are the worlds third largest Soda Ash and Indias leading vacuum evaporated iodised salt producer. Their salt works, spread over 36,000 acres, are the largest in Asia. We produce soda ash using synthetic and natural mining process. Of this, 3/4th capacity consists of natural soda ash allowing us significant cost competiveness.
TATACHEM is one of the crown jewels of the Tata group, being the 3rd largest manufacturer of Soda Ash and 6th largest of Sodium Bicarb in the world, both of which have numerous uses - from glass, detergents and medication to being used in EV batteries ⚡
Here are some of the important points to note, and why I think this is one for the long haul:
📍 Soda Ash demand is booming, with increased usage of glass in buildings, increased production of EV batteries for vehicles, and increased demand water treatment.
📍 Tata Chemicals is on track to increase the capacity of Soda Ash production by 30% on top of the 4.4 million tonnes per annum (MTPA) of installed capacity and ongoing expansion, which help further capitalise on growing demand.
📍 Since Tata Chemicals have a cost advantage, relying on the mining of Trona from the US and Africa, they can also pass down the rise in raw material costs to the buyers, and therefore maintains a pricing/margin advantage as well.
📍 Tata Chemicals is now getting into the specialty chemicals space - used in medicines or in pharmaceuticals, or other specialised applications, attracting more sticky customers, higher pricing, better margins, better return ratios, and subsequently even higher valuations.
📍 It has been investing in areas like High-Density Silica, nutraceuticals and EV batteries to drive the next leg of growth.
This Pros of the company are helping to boost the revenue growth of the company resulting as a good stock to invest for long term. The company has a wide scope in the future and is expected to give great profits.
Given below are the links of my ideas of my other long term picks that are recently posted. Do check it out :)
Market has crashed so the stocks have corrected from our entry prices. Don't worry, these companies are fundamentally good and therefore we can keep accumulating on dips.
As always, simple and neat charts so everyone can understand and not make it too complicated.
Will be posting more such ideas like this. Until that, like share and follow :)
check my other ideas to get to know about all the successful trades based on price action.
Thanks,
Aniket.
keep learning and keep earning.
As market crashed, many stocks have given good downfall from ATH (All time high).
We should look at it as an advantage to accumulate fundamentally good stocks for long term.
Chemical and fertiliser stocks have also given a good retracement with the market.
TATACHEM, one of the good fundamentally strong chemical company has corrected 27% from All Time High.
--------------------------------------------------------------------------------------------------------------------------------------
On the chart, I have provided the Price action analysis and entries on it. Here is a note of fundamental analysis on TATACHEM.
A short description of the company:
Tata Chemicals engages in the manufacture of inorganic chemistry products with plants spread across four continents America, Europe, Africa and Asia. We are the worlds third largest Soda Ash and Indias leading vacuum evaporated iodised salt producer. Their salt works, spread over 36,000 acres, are the largest in Asia. We produce soda ash using synthetic and natural mining process. Of this, 3/4th capacity consists of natural soda ash allowing us significant cost competiveness.
TATACHEM is one of the crown jewels of the Tata group, being the 3rd largest manufacturer of Soda Ash and 6th largest of Sodium Bicarb in the world, both of which have numerous uses - from glass, detergents and medication to being used in EV batteries ⚡
Here are some of the important points to note, and why I think this is one for the long haul:
📍 Soda Ash demand is booming, with increased usage of glass in buildings, increased production of EV batteries for vehicles, and increased demand water treatment.
📍 Tata Chemicals is on track to increase the capacity of Soda Ash production by 30% on top of the 4.4 million tonnes per annum (MTPA) of installed capacity and ongoing expansion, which help further capitalise on growing demand.
📍 Since Tata Chemicals have a cost advantage, relying on the mining of Trona from the US and Africa, they can also pass down the rise in raw material costs to the buyers, and therefore maintains a pricing/margin advantage as well.
📍 Tata Chemicals is now getting into the specialty chemicals space - used in medicines or in pharmaceuticals, or other specialised applications, attracting more sticky customers, higher pricing, better margins, better return ratios, and subsequently even higher valuations.
📍 It has been investing in areas like High-Density Silica, nutraceuticals and EV batteries to drive the next leg of growth.
This Pros of the company are helping to boost the revenue growth of the company resulting as a good stock to invest for long term. The company has a wide scope in the future and is expected to give great profits.
Given below are the links of my ideas of my other long term picks that are recently posted. Do check it out :)
Market has crashed so the stocks have corrected from our entry prices. Don't worry, these companies are fundamentally good and therefore we can keep accumulating on dips.
As always, simple and neat charts so everyone can understand and not make it too complicated.
Will be posting more such ideas like this. Until that, like share and follow :)
check my other ideas to get to know about all the successful trades based on price action.
Thanks,
Aniket.
keep learning and keep earning.
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