Tatva Chintan Pharma Chem Q4 Results Review - Still Not Out Of The Woods: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.Tatva Chintan Pharma Chem Ltd.’s Q4 FY23 Ebitda came broadly inline with our estimates. While structure directing agent revenue was up ~39% YoY, sequentially it was flattish. The management expects SDAs to come back to FY22 level in FY24, which implies ~75% YoY growth. Excluding SDA portfolio growth has moderated on a sequential basis from last two quarters. The pharmaceuticals and agrochemicals intermediates and other specialty chemicals segment product pipeline looks encouraging, but for most of the new products, commercialisation is expected in FY25. Since SDAs are in the recovery mode, PTC growth could be pegged at ~10% YoY. We expect excluding SDA portfolio to grow at ~16% YoY in FY24. The Flame Retardants market is going through a rough patch due to demand pressure and pricing challenges amid global capacity addition in bromine. Improving mix of phase transfer catalysts should ideally lift up the margin profile, however the management has guided for ~18-20% Ebitda margin for FY24, which is significantly lower from FY22 levels. We believe that in majority of Tatva Chintan’s portfolio, per kg Ebitda is not protected and hence in a declining pricing scenario, earnings growth should be moderate. While the management elaborated in detail regarding various products across segments (mainly PASC) and their development cycle along with client approvals, a large part of the new products would need at least 12-15 months to scale up commercially..Click on the attachment to read the full report:.Apar Industries Q4 Results Review - On Course To Scale New Heights: Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tatva Chintan Pharma Chem Q4 Results Review - Still Not Out Of The Woods: Nirmal Bang

Margins unlikely to go back to old normal.

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