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Tata Chemicals Limited (IN:TATACHEM)
:TATACHEM
India Market
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Tata Chemicals Limited (TATACHEM) AI Stock Analysis

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IN:TATACHEM

Tata Chemicals Limited

(TATACHEM)

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Neutral 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
₹983.00
▲(5.63% Upside)
Tata Chemicals' overall stock score reflects a mixed financial performance with strong balance sheet metrics but challenges in profitability and cash flow. Technical indicators suggest neutral momentum, while valuation metrics indicate potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Tata Chemicals Limited (TATACHEM) vs. iShares MSCI India ETF (INDA)

Tata Chemicals Limited Business Overview & Revenue Model

Company DescriptionTata Chemicals Limited manufactures, sells, and distributes basic chemistry and specialty products in India, Europe, Africa, the United States, rest of Asia, and internationally. It offers dense and light soda ash; crushed refined soda; Portland and masonry cement under the Tata Shudh brand name; salt; pharmaceutical grade, food grade, and animal feed grade sodium bicarbonate, as well as technical and refined grade sodium bicarbonate; and allied chemicals, such as caustic soda, bromine-based products, and gypsum, as well as marine chemicals and nutrition solutions. In addition, it offers specialty products, including nano zinc oxides for various industrial and cosmetic applications; and silica. Further, the company provides fungicides, insecticides, pesticides, herbicides, plant growth nutrients, crop protection solutions, and seeds, as well as agri-input solutions; and runs farmer connect initiative under the Rallis Kisan Kutumb name. Its products are used in various industrial applications, such as agriculture; animal nutrition; chemicals; construction; food and nutrition; glass; high performance rubber; metals; oral care and cosmetics; paints, inks, and adhesives; pharmaceuticals; safety and environmen; soaps and detergents; textiles and leather; lithium-ion, dry cell, and other batteries; and others. Tata Chemicals Limited was founded in 1927 and is based in Mumbai, India.
How the Company Makes MoneyTata Chemicals Limited generates revenue primarily through the production and sale of basic and specialty chemicals. The company's key revenue streams include the sale of soda ash, which is used extensively in the manufacture of glass, detergents, and other industrial products. Sodium bicarbonate, another significant product, is used in food, pharmaceuticals, and personal care products. Tata Chemicals also earns revenue from its consumer products division, which includes brands like Tata Salt, a leading iodized salt in India. Furthermore, the company invests heavily in research and development to innovate and expand its specialty chemicals portfolio, catering to sectors like agriculture, nutrition, and material sciences. Strategic partnerships and joint ventures, both domestically and internationally, also play a critical role in enhancing its market presence and profitability.

Tata Chemicals Limited Financial Statement Overview

Summary
Tata Chemicals has a mixed financial performance. The balance sheet is strong with controlled leverage, but income statement metrics show declining profitability. Cash flow issues are notable due to negative free cash flow and significant capital expenditures.
Income Statement
62
Positive
Tata Chemicals exhibited moderate income statement performance. The gross profit margins have been strong, indicating efficient cost management, but there's been a noticeable decline in net profit margin in the most recent year due to decreased net income. Revenue growth has been inconsistent, with a recent downturn, reflecting potential demand volatility or pricing pressures in the chemicals market. The EBIT and EBITDA margins also show a downward trend, suggesting challenges in operational efficiency.
Balance Sheet
75
Positive
The balance sheet remains solid with a healthy equity ratio, indicating a strong asset base relative to liabilities. The debt-to-equity ratio is stable, reflecting controlled leverage and financial stability. However, there is a slight decline in stockholders' equity, which could be a point of concern if it continues. Return on equity has been relatively low, pointing to limited profitability relative to shareholders' investments.
Cash Flow
58
Neutral
Cash flow analysis highlights some challenges. The free cash flow has turned negative recently, primarily due to significant capital expenditures, indicating potential future growth investments but also liquidity strain. Operating cash flow has been positive, yet the operating cash flow to net income ratio has decreased, suggesting less cash generation relative to profit. Free cash flow to net income ratio is negative, highlighting current cash flow issues.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue113.39B148.87B154.21B167.89B126.22B102.00B
Gross Profit57.16B95.88B58.33B105.18B95.02B71.30B
EBITDA17.48B22.07B21.71B39.57B24.73B16.53B
Net Income2.88B2.35B2.68B23.17B12.58B2.56B
Balance Sheet
Total Assets377.80B377.80B367.56B350.84B338.43B283.37B
Cash, Cash Equivalents and Short-Term Investments15.66B15.66B12.57B19.34B26.16B29.61B
Total Debt70.72B70.72B55.63B62.96B70.25B69.33B
Total Liabilities152.79B152.79B136.42B144.42B146.86B131.95B
Stockholders Equity215.94B215.94B222.41B197.21B182.53B142.90B
Cash Flow
Free Cash Flow0.00-2.44B11.82B13.93B3.68B7.95B
Operating Cash Flow0.0017.61B30.16B29.71B16.44B20.37B
Investing Cash Flow0.00-16.81B-6.10B-11.86B-8.36B-11.30B
Financing Cash Flow0.00290.00M-24.94B-20.76B-7.55B-14.56B

Tata Chemicals Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price930.60
Price Trends
50DMA
953.63
Negative
100DMA
927.24
Positive
200DMA
914.16
Positive
Market Momentum
MACD
3.28
Positive
RSI
41.04
Neutral
STOCH
5.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATACHEM, the sentiment is Negative. The current price of 930.6 is below the 20-day moving average (MA) of 958.56, below the 50-day MA of 953.63, and above the 200-day MA of 914.16, indicating a neutral trend. The MACD of 3.28 indicates Positive momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 5.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATACHEM.

Tata Chemicals Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
193.23B19.9014.97%0.65%23.22%85.82%
68
Neutral
175.07B74.808.30%0.44%4.67%-47.63%
66
Neutral
267.19B49.8217.42%0.22%13.78%28.22%
63
Neutral
195.65B50.2613.18%0.44%5.63%-41.01%
57
Neutral
234.22B66.5410.99%0.26%21.52%36.24%
57
Neutral
₹237.08B71.761.16%-1.17%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:TATACHEM
Tata Chemicals Limited
930.60
-147.55
-13.69%
IN:BASF
BASF India Limited
4,519.90
-2,835.20
-38.55%
IN:CARBORUNIV
Carborundum Universal Limited
919.30
-571.29
-38.33%
IN:DEEPAKFERT
Deepak Fertilisers and Petrochemicals Corporation Ltd.
1,530.65
472.63
44.67%
IN:NAVINFLUOR
Navin Fluorine International Limited
4,572.65
1,142.25
33.30%
IN:SUMICHEM
Sumitomo Chemical India Ltd.
535.30
-20.42
-3.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 26, 2025