CMP: 325

Tata Chemicals Ltd. manufactures salt and salt by-products, alkalies and heavy chemicals, pharmaceuticals, fertilizers and agro-chemicals. The Company's salt products include common salt, pure salt and gypsum salt. Heavy chemicals include soda ash, caustic soda and hydrochloric acid. Tata Chemicals' pharmaceuticals include bromides of ammonium, sodium, potassium and ethyl.

Tata chemicals is a decent bet in mid-cap space well on its way to become a large cap. Its currently trading at a P/E of 18 with good dividend yields of over 3% in the last 12 months. Liabilities are high, but strong cash equivalents and revenue base keeps it at bay. Revenues have grown from 3991 Crores to 6332 Crores in the last 5 years. Profits have fluctuated and stayed over 400 Crores in the last 5 years. FY12 has been good so far and advance tax of Rs 70 crore for Oct-Dec has been paid versus Rs 55 crore last year. Buy and book profits above 400 levels.