HSBC downgrades India's Tata Chemicals; sees weak Q4 for UPL, Rallis

Dhanuka Agritech

15/04/2024 11:12

** Brokerage HSBC downgrades Tata Chemicals  TTCH.NS  to
"reduce" from "hold", flags weak fundamentals in soda ash
segment and elevated valuations
        ** TTCH ends session ~4% lower, extending declines from
Friday
  
    ** Expect volume- and pricing-led pressure to impact Q4
results for UPL  UPLL.NS  and Rallis India  RALL.NS , leading to
6%-25% rev declines, brokerage says
    ** Retains "buy" on UPL, "reduce" on RALL; avg rating on
UPLL, RALL, TTCH are "buy", "hold" and "sell" respectively -
LSEG
    ** Adds domestic agri-chem companies likely fared better,
"prefers" PI Industries  PIIL.NS  and Dhanuka Agritech  DHNP.NS 
    ** Sector to revive in H2CY24 after "disrupted" 2023, led by
lower inventory, stable prices - HSBC
    ** UPLL, RALL, PIIL, DHNP close down between 1.12%-2.6%

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))