Tata Chemicals Limited (TATACHEM) AI Stock Analysis

• Market Cap: ₹230.07B
• Dividend Yield: 1.22%
• Average Volume (3M): 47.23K
• Price to Earnings (P/E): 68.3
• Beta (1Y): 1.20
• Revenue Growth: -1.17%
• EPS Growth: N/A
• Country: IN
• Employees: 4,644
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 9.90
• Shares Outstanding: 254,756,270
• 10 Day Avg. Volume: 35,220
• 30 Day Avg. Volume: 47,231
• PEG Ratio: -7.42
• 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: ₹1,127.00
• Price Target Upside: 24.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ₹983.00 ▲(8.85% 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 Business Overview & Revenue Model

Company Description

Tata 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 Money

Tata 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 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	112.27B	148.87B	154.21B	167.89B	126.22B	102.00B
Gross Profit	65.13B	95.88B	58.33B	66.89B	74.25B	32.88B
EBITDA	19.14B	22.07B	21.71B	39.57B	24.73B	16.53B
Net Income	3.90B	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: 903.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 903.1 is below the 20-day moving average (MA) of 928.76, below the 50-day MA of 940.79, and below the 200-day MA of 903.74, indicating a bearish trend. The MACD of -11.97 indicates Positive momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 27.58 is Neutral, 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	69 Neutral	₹181.88B	18.54	―	0.69%	23.22%	85.82%
CARBORUNIV	68 Neutral	₹174.56B	72.20	―	0.44%	4.67%	-47.63%
SUMICHEM	66 Neutral	₹258.41B	46.38	―	0.23%	13.78%	28.22%
NAVINFLUOR	64 Neutral	₹258.85B	70.68	―	0.23%	21.52%	36.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BASF	60 Neutral	₹198.72B	50.20	―	0.44%	5.63%	-41.01%
TATACHEM	57 Neutral	₹230.07B	68.27	―	1.22%	-1.17%	―