Tata Chemicals Limited (TATACHEM) AI Stock Analysis

• Market Cap: ₹237.96B
• Dividend Yield: 1.18%
• Average Volume (3M): 39.56K
• Price to Earnings (P/E): 70.6
• Beta (1Y): 1.17
• Revenue Growth: -1.17%
• EPS Growth: N/A
• Country: IN
• Employees: 4,644
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals
• EPS (TTM): 9.90
• Shares Outstanding: 254,756,270
• 10 Day Avg. Volume: 11,582
• 30 Day Avg. Volume: 39,560
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,044.50
• Price Target Upside: 11.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: ₹962.00 ▲(2.99% Upside)

Tata Chemicals' overall stock score is primarily influenced by its mixed financial performance and stretched valuation. The strong balance sheet is a positive, but operational challenges and cash flow issues weigh heavily. Technical analysis indicates a lack of strong momentum, and the high P/E ratio suggests potential overvaluation.

Tata Chemicals Limited Business Overview & Revenue Model

Company Description

Tata Chemicals Limited (TATACHEM) is a leading global company in the chemicals industry, headquartered in India. The company operates in various sectors, including basic chemistry products, consumer products, and specialty chemistry. Its core products include soda ash, sodium bicarbonate, and other inorganic chemicals, which are essential for industries such as glass, detergents, and food. Additionally, Tata Chemicals has a strong focus on sustainability and innovation, offering products such as nutraceuticals and specialty silica.

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 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

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	113.39B	148.87B	154.21B	167.89B	126.22B	102.00B
Gross Profit	57.16B	95.88B	58.33B	105.18B	95.02B	71.30B
EBITDA	17.48B	22.07B	21.71B	39.57B	24.73B	16.53B
Net Income	2.88B	2.35B	2.68B	23.17B	12.58B	2.56B
Balance Sheet
Total Assets	377.80B	377.80B	367.56B	350.84B	338.43B	283.37B
Cash, Cash Equivalents and Short-Term Investments	15.66B	15.66B	12.57B	19.34B	26.16B	29.61B
Total Debt	70.72B	70.72B	55.63B	62.96B	70.25B	69.33B
Total Liabilities	152.79B	152.79B	136.42B	144.42B	146.86B	131.95B
Stockholders Equity	215.94B	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: 934.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 934.05 is below the 20-day moving average (MA) of 939.94, below the 50-day MA of 943.01, and above the 200-day MA of 923.00, indicating a neutral trend. The MACD of -3.30 indicates Positive momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 56.78 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
BASF	69 Neutral	₹201.34B	50.86		0.43%	5.63%	-41.01%
DEEPAKFERT	68 Neutral	₹182.09B	18.56		0.69%	23.22%	85.82%
CARBORUNIV	67 Neutral	₹180.19B	74.54		0.42%	4.67%	-47.63%
Sector *	62 Neutral	$10.36B	6.35	0.76%	2.84%	3.10%	-36.03%
SUMICHEM	61 Neutral	₹284.26B	51.02		0.21%	13.78%	28.22%
NAVINFLUOR	59 Neutral	₹238.81B	65.22		0.26%	21.52%	36.24%
TATACHEM	56 Neutral	₹237.96B	70.61		1.18%	-1.17%	―