Tata Chemicals Limited (TATACHEM) AI Stock Analysis

• Market Cap: ₹227.36B
• Dividend Yield: 1.37%
• Average Volume (3M): 47.23K
• Price to Earnings (P/E): 103.3
• Beta (1Y): 1.18
• Revenue Growth: -1.99%
• EPS Growth: N/A
• Country: IN
• Employees: 4,644
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 5.00
• Shares Outstanding: 254,756,270
• 10 Day Avg. Volume: 35,220
• 30 Day Avg. Volume: 47,231
• PEG Ratio: -3.21
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -87.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹850.00 ▲(6.18% Upside)

Tata Chemicals' overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The strong balance sheet is offset by declining profitability and cash flow challenges. Technical analysis indicates a bearish trend, with the stock trading below key moving averages and oversold conditions. The high P/E ratio suggests overvaluation, contributing to a cautious outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a stable debt-to-equity ratio indicates financial stability and the ability to withstand economic fluctuations.

Gross Profit Margins

Strong gross profit margins reflect efficient cost management, which can support profitability even amidst revenue fluctuations.

Sustainability and Innovation

Commitment to sustainability and innovation attracts eco-conscious customers, enhancing long-term market position and brand loyalty.

Negative Factors

Declining Net Profit Margins

Declining net profit margins suggest challenges in maintaining profitability, potentially impacting future earnings and investor confidence.

Negative Free Cash Flow

Negative free cash flow indicates liquidity strain, which could limit the company's ability to invest in growth opportunities or manage debt.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects potential demand volatility or pricing pressures, which may challenge long-term business expansion.

Tata Chemicals Limited Business Overview & Revenue Model

Company Description

Tata Chemicals Limited (TATACHEM) is a global company headquartered in India, primarily involved in the manufacturing and distribution of a diverse range of chemicals and agricultural products. The company operates in two main segments: the chemicals business, which includes soda ash, sodium bicarbonate, and other industrial chemicals, and the agri-business segment, which focuses on fertilizers, crop protection chemicals, and specialty nutrients. Tata Chemicals is committed to sustainability and innovation, producing eco-friendly products that cater to various industries, including food and beverage, pharmaceuticals, and agriculture.

How the Company Makes Money

Tata Chemicals generates revenue through multiple streams, primarily from the sale of its chemical products and agricultural inputs. The chemicals segment, which includes soda ash and sodium bicarbonate, contributes significantly to the company's earnings, as these products are essential in various industries such as glass manufacturing, detergents, and food processing. The agri-business segment also plays a crucial role, providing fertilizers and crop protection solutions to farmers, thus tapping into the growing agricultural sector. Additionally, Tata Chemicals has formed strategic partnerships and joint ventures that enhance its market reach and operational efficiency. The company's focus on sustainability and innovation helps it maintain a competitive edge, attracting customers who prioritize eco-friendly solutions.

Tata Chemicals Limited Financial Statement Overview

Summary

Tata Chemicals shows a mixed financial landscape. The balance sheet is strong with controlled leverage, but income statement metrics reflect operational challenges and declining profitability. The cash flow situation raises concerns due to significant capital expenditures and negative free cash flow.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	148.17B	148.87B	154.21B	167.89B	126.22B	102.00B
Gross Profit	96.77B	89.42B	93.15B	99.25B	74.25B	73.82B
EBITDA	19.40B	18.41B	28.11B	39.05B	23.50B	14.66B
Net Income	3.37B	2.35B	2.68B	23.17B	12.58B	2.56B
Balance Sheet
Total Assets	0.00	377.80B	367.56B	350.84B	338.43B	283.37B
Cash, Cash Equivalents and Short-Term Investments	14.01B	14.01B	12.57B	19.34B	26.16B	29.61B
Total Debt	0.00	70.72B	55.63B	62.96B	70.25B	69.33B
Total Liabilities	-225.01B	152.79B	136.42B	144.42B	146.86B	131.95B
Stockholders Equity	225.01B	215.94B	222.41B	197.21B	182.53B	142.90B
Cash Flow
Free Cash Flow	0.00	-2.44B	11.82B	13.93B	3.68B	7.95B
Operating Cash Flow	0.00	17.61B	30.16B	29.71B	16.44B	20.37B
Investing Cash Flow	0.00	-16.81B	-6.10B	-11.86B	-8.36B	-11.30B
Financing Cash Flow	0.00	290.00M	-24.94B	-20.76B	-7.55B	-14.56B

Tata Chemicals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 800.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 800.5 is below the 20-day moving average (MA) of 832.39, below the 50-day MA of 886.68, and below the 200-day MA of 887.41, indicating a bearish trend. The MACD of -25.49 indicates Positive momentum. The RSI at 27.13 is Positive, neither overbought nor oversold. The STOCH value of 12.62 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEEPAKFERT	73 Outperform	₹189.84B	19.35	―	0.73%	21.68%	45.18%
CARBORUNIV	65 Neutral	₹170.49B	85.10	―	0.46%	4.51%	-57.87%
NAVINFLUOR	64 Neutral	₹310.07B	68.25	―	0.24%	30.05%	70.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUMICHEM	61 Neutral	₹236.22B	43.53	―	0.26%	8.69%	12.26%
BASF	60 Neutral	₹192.55B	48.64	―	0.48%	0.43%	-42.29%
TATACHEM	54 Neutral	₹227.36B	103.34	―	1.37%	-1.99%	―

Tata Chemicals Limited Corporate Events

Tata Chemicals Releases Q2 and Half-Year Financial Results

Tata Chemicals Limited announced the approval of its Unaudited Consolidated and Audited Standalone Financial Results for the second quarter and half year ending September 30, 2025. These results were published in several newspapers and are available on the company’s website, reflecting the company’s commitment to transparency and stakeholder engagement.

Tata Chemicals Reports Mixed Q2FY26 Results Amid Market Challenges

Tata Chemicals Limited announced its financial results for the second quarter and half year ending September 30, 2025, revealing a mixed performance amid challenging market conditions. The consolidated revenue for the quarter was ₹3,877 crore, a 3% decline from the previous year, attributed to subdued market conditions and the reconfiguration of UK operations. Despite a challenging soda ash market with oversupply and weakening prices, the company’s standalone performance was positive, driven by higher volumes and disciplined cost management. The standalone revenue increased by 19% to ₹1,204 crore, with a significant 67% rise in EBITDA, showcasing resilience in the face of market headwinds.

Tata Chemicals Releases Q2 Financial Results Presentation

Tata Chemicals Limited has released an investor presentation detailing its unaudited consolidated and audited standalone financial results for the second quarter and half-year ending September 30, 2025. This presentation, which complies with SEBI regulations, is part of the company’s efforts to maintain transparency with stakeholders and is available on their website. The announcement is expected to provide insights into the company’s financial performance and strategic direction, potentially impacting investor perceptions and market positioning.

Tata Chemicals Updates RTA Contact Email for Investors

Tata Chemicals Limited has announced a change in the email address for investor communications with its Registrar and Transfer Agent, MUFG Intime India Private Limited, effective October 1, 2025. This update aims to streamline investor interactions, although the company’s address, website, and contact number remain unchanged.