Shares of Tatva Chintan Pharma Chem Ltd. tumbled the most in over six weeks after analysts listed challenges from chip shortage, geopolitical stress in Europe, lockdown in China, and aggressive diversification into low-margin segments.
Here's what brokerages have to say about Tatva Chintan's Q1 FY23 results.
Nirmal Bang
Reiterates 'accumulate' with a target price of Rs 2,650, an implied upside of 11.79%.
Higher-than-expected pressure in structure directing agents and forex loss of Rs 5 crore, dragged Ebitda.
SDA revenue contribution fell to 7% from 52% YoY as sales were affected due to semiconductor shortage, geopolitical concerns in Europe due to Russia's invasion of Ukraine and extended lockdowns in China due to Covid-19.
Expects significant improvement in SDA sales from Q4 FY2022-23.
Remains positive on the growth potential in SDA segment.
Prices in risk of delay in scale-up and competitive challenges as the company looks to diversify into other segments.
JM Financial
Reiterates 'hold', cuts target to Rs 2,400 from Rs 2,530, still an implied upside of 1.24%.
Decline in SDA sales and forex loss weighed on Ebitda.
SDAs were hurt due to lower offtake from China due to lockdown as well as chip shortages.
Expects SDA demand outlook to improve from Q3 FY2022-23 onwards.
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