Reducing Debt and tapping the Solar Energy trend can turn this sleeping stock into a multibagger

What is the Fuss?

Tata Chemicals announced its Q4 FY 23 earnings on 3rd May, 2023. This company has historically traded at a low Price to Earnings (PE) multiple of 8–10. After de-merging its FMCG business into another listed company, Tata Consumer Products, Tata Chemicals has embarked on a journey to tap into emerging trends such as solar energy. This post covers key highlights from Q4 FY 23 earnings call, and reasons why this stock should be on investors’ radar.

The Company — Tata Chemicals

Hearing the company name, Tata Chemicals, people might think of Tata Salt, desh ka namak. However, this is not entirely accurate. Tata Salt brand was transferred in 2020 to the FMCG company Tata Consumer Products. Post this, Tata Chemicals was left with three key business verticals — Soda Ash, Sodium Bicarbonate, and Salt (industrial usage). These three business lines are called Basic Chemistry Products.

Some might be surprised to know that Tata Chemicals also has an agrochemical arm, via a fully owned subsidiary — Rallis…