InvestorQ : What has been the reason behind the sharp rally in Tata Chemicals stock price in the last few months?
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What has been the reason behind the sharp rally in Tata Chemicals stock price in the last few months?

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Juvina Maggie answered.
2 months ago
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Tata Chemicals, part of the Tata Group, has rallied quite sharply by 10% on Thursday to hit a life-time high of Rs.738 per share on 25 February. However, that is only part of the story. The really grist to the rally came from a longer-term perspective with the stock having rallied nearly 100% in the last 3 months.

One of the major triggers for the stock has come from Tata Sons, the holding company of the entire Tata Group companies, raising its stake in Tata Chemicals. Tata Sons has been gradually building up its positions in most of the group companies with a view to exercise better control over the group companies and that has been a trend seen in the past across most of its group companies.

In fact, as of December 2020, Tata Sons had increased its stake in Tata Chemicals from 29.39% to 31.90%. It may be recollected that as part of the reorganization of the group businesses, the salt business of Tata Chemicals was moved out into the portfolio of Tata Consumer Products to give it a more consumer flavour.

After hiving off its salt business to Tata Consumer Products, Tata Chemicals now has a residual product range that caters to leading manufacturers of glass, detergents and other industrial products. Tata Chemicals has a strong presence in soda ash and in the crop protection business, which includes agrochemicals like insecticides and pesticides.

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