Tata Chemicals
The Tribune — December 26, 2005


One good news is that Tata Chemicals has gained control of UK soda-ash manufacturing company, Brunnermonde, for about Rs 5.08 billion. Its production capacity is only slightly less than that of Tata Chemicals itself. With 63.5 per cent purchase of equity in the UK company. Tata Chemicals would be among the top five soda-ash makers in the world. The company has en equity capital of Rs 215.10 crore and an EPS of Rs 15.83 for 2004-05.

It has "security premium reserves" amounting to Rs 181.11 crore and "general reserves" (including balance in profit and loss account) of Rs 1,334.60 crore. As on March 31, 2005, the market value of its quoted investments were Rs 757.26 crore and in it unquoted investments, which include investment in Tata Industries and Tata Sons, apart from other shares and holdings in mutual funds, stands at Rs 803.13 crore. The present market value of its quoted investment must be more than Rs 1,400 crore and its total investment would be more than Rs 2,200 crore.

For the accounting year 2004-05, it declared a dividend of 65 per cent with a total outgo of Rs 159.73 crore. Its investment income was Rs 70.87 crore which comes to 44 per cent of its dividend outgo. The book value of Rs 10 face value share is Rs 92.8. At present it is quoting around Rs 221. It is a safe investment for long-term shareholders.