Tatva Chintan Pharma Chem Limited (TATVA) AI Stock Analysis

• Market Cap: ₹27.01B
• Dividend Yield: 0.07%
• Average Volume (3M): 12.52K
• Price to Earnings (P/E): 82.4
• Beta (1Y): 1.17
• Revenue Growth: 16.88%
• EPS Growth: 0.69%
• Country: IN
• Employees: 689
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 4.50
• Shares Outstanding: 23,392,056
• 10 Day Avg. Volume: 25,333
• 30 Day Avg. Volume: 12,516
• PEG Ratio: -3.55
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 4.33
• P/FCF Ratio: -32.09
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ₹1,174.00 ▼(-15.44% Downside)

The score is held back primarily by weak technical momentum (price below key moving averages with negative MACD) and expensive valuation (very high P/E with minimal dividend yield). Financial performance is mixed: balance sheet strength helps, but profitability volatility and negative free cash flow materially reduce overall quality.

Positive Factors

Diverse end markets

Serving multiple industrial end markets creates demand diversification and reduces reliance on any single cyclical sector. This structural exposure to pharmaceuticals, petrochemicals and energy storage supports stable long-term revenue potential as different end markets follow distinct cycles and secular trends.

Low leverage balance sheet

A conservative capital structure with low debt and a robust equity base enhances financial flexibility, lowers refinancing risk, and enables funding of strategic capex or cyclical downturns without stressing liquidity. This underpins long-term resilience and growth optionality.

Operating cash supports earnings

Positive operational cash generation indicates core business converts profit into cash, supporting working capital and recurrent needs. Over time this fosters self-funded reinvestment and steadier operations, even if free cash flow is impacted by strategic capex in growth phases.

Negative Factors

Negative free cash flow

Persistent negative free cash flow driven by heavy capex constrains liquidity and forces reliance on external funding or equity to finance investments. Over months this can pressure reserves, limit strategic optionality, and increase vulnerability if revenue or margins weaken.

Profitability volatility & revenue decline

Declining revenue and swingy net margins suggest inconsistent pricing power or rising input costs, reducing predictability of earnings. For a specialty chemicals maker, persistent margin volatility weakens reinvestment capacity and undermines long-term cash generation stability.

Falling return on equity

A declining ROE indicates the company is generating lower profitability relative to shareholder capital, pointing to possible asset underutilization or lower product profitability. Over months this can signal structural issues with capital allocation and reduce long-term shareholder value creation.

Tatva Chintan Pharma Chem Limited Business Overview & Revenue Model

Company Description

Tatva Chintan Pharma Chem Limited manufactures and sells specialty chemicals in India. The company offers a portfolio of structure directing agents for zeolites synthesis; phase transfer catalysts; electrolyte salts for super capacitor batteries; and pharmaceutical APIs, agrochemical products, and other specialty chemicals in the form of intermediates, disinfectants, catalysts, and solvents. It also provides quaternary compounds and quats, and bulk drugs, as well as trading of specialty chemicals. It serves various industries, including the automotive, petroleum, pharmaceutical, agro-chemicals, paints and coatings, dyes and pigments, personal care, and flavor and fragrances industries. The company also exports its products to approximately 25 countries. Tatva Chintan Pharma Chem Limited was incorporated in 1996 and is headquartered in Vadodara, India.

How the Company Makes Money

Tatva Chintan Pharma Chem Limited generates revenue through the production and sale of a wide array of fine chemicals and intermediates, primarily targeting the pharmaceutical and agrochemical sectors. Its revenue model hinges on the manufacturing of specialized chemical products tailored to the needs of its clients, which include major pharmaceutical companies. Key revenue streams include the sale of APIs, pharmaceutical intermediates, and specialty chemicals that are sold both domestically and internationally. The company also benefits from long-term contracts with major clients, which provides a steady income flow. Additionally, TATVA invests in research and development to create new products and improve existing ones, enhancing its market competitiveness and driving sales growth. Strategic partnerships with other industries and collaborations for product development further contribute to its revenue generation.

Tatva Chintan Pharma Chem Limited Financial Statement Overview

Summary

Mixed fundamentals: a solid, low-leverage balance sheet supports stability, but income statement trends show revenue decline (2024 to 2025) and sharply weaker, volatile net margins. Cash flow is a key drag due to persistently negative free cash flow driven by heavy capex, despite operating cash generation remaining supportive.

Income Statement

Tatva Chintan Pharma Chem Limited exhibits a mixed performance in its income statement. The company has shown inconsistent revenue growth with a decline in revenue from 2024 to 2025, which may raise concerns. Gross Profit Margin has been strong historically but has recently declined, indicating cost pressures. The Net Profit Margin has been volatile, showing a sharp decrease in 2025, which suggests challenges in maintaining profitability. Despite these fluctuations, the company maintains positive EBIT and EBITDA margins, which reflect underlying operational efficiency.

Balance Sheet

The balance sheet of Tatva Chintan Pharma Chem Limited is solid, with a strong equity position. The Debt-to-Equity Ratio is low, indicating conservative leverage and financial stability. The Equity Ratio is robust, reflecting a strong capital base. However, the Return on Equity has decreased over time, suggesting potential inefficiencies in generating returns from equity capital. Overall, the company is financially stable, but there are areas for improvement in asset utilization.

Cash Flow

The cash flow statement reflects challenges with negative free cash flow across the years, primarily due to high capital expenditure, which may indicate investment for future growth but affects current liquidity. Operating Cash Flow to Net Income Ratio is positive, showing that operational cash generation is supporting net income. However, the Free Cash Flow to Net Income Ratio is negative, highlighting the pressure from capital outlays. The negative Free Cash Flow Growth Rate suggests a need for careful cash management moving forward.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.94B	3.83B	3.94B	4.24B	4.34B	3.00B
Gross Profit	1.94B	1.84B	2.11B	1.91B	2.32B	1.43B
EBITDA	390.31M	342.13M	689.34M	676.30M	1.08B	666.37M
Net Income	71.55M	57.13M	303.54M	454.87M	958.74M	522.62M
Balance Sheet
Total Assets	0.00	8.36B	8.19B	7.56B	6.58B	3.15B
Cash, Cash Equivalents and Short-Term Investments	140.96M	117.01M	456.68M	412.15M	638.19M	53.24M
Total Debt	0.00	363.88M	142.71M	1.70B	1.20B	902.48M
Total Liabilities	-7.39B	974.25M	816.36M	2.42B	1.85B	1.49B
Stockholders Equity	7.39B	7.39B	7.37B	5.15B	4.73B	1.66B
Cash Flow
Free Cash Flow	0.00	-516.01M	-304.71M	-1.75B	-687.79M	33.49M
Operating Cash Flow	0.00	246.71M	980.44M	277.83M	203.78M	243.19M
Investing Cash Flow	0.00	-652.54M	-1.21B	-1.01B	-1.97B	-207.02M
Financing Cash Flow	0.00	165.66M	305.19M	377.95M	2.35B	-44.80M

Tatva Chintan Pharma Chem Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1388.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATVA, the sentiment is Negative. The current price of 1388.35 is above the 20-day moving average (MA) of 1278.30, above the 50-day MA of 1355.04, and above the 200-day MA of 1120.03, indicating a neutral trend. The MACD of -59.53 indicates Positive momentum. The RSI at 37.77 is Neutral, neither overbought nor oversold. The STOCH value of 10.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATVA.

Tatva Chintan Pharma Chem Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCL	75 Outperform	₹25.62B	26.12	―	0.65%	-10.12%	-22.38%
PUNJABCHEM	64 Neutral	₹14.91B	24.83	―	0.24%	10.70%	32.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IOLCP	60 Neutral	₹21.72B	18.75	―	0.97%	5.74%	16.06%
KIRIINDUS	60 Neutral	₹27.88B	21.24	―	―	-22.04%	-58.81%
TATVA	53 Neutral	₹27.01B	82.44	―	0.07%	16.88%	0.69%
YASHO	52 Neutral	₹14.73B	116.29	―	0.03%	11.74%	-64.13%

Tatva Chintan Pharma Chem Limited Corporate Events

Tatva Chintan Publishes Q3 FY26 Earnings Call Transcript for Investor Access

Tatva Chintan Pharma Chem Limited has released the transcript of its Q3 FY26 earnings conference call held on 21 January 2026, following the announcement of its financial results for the quarter and nine months ended 31 December 2025. The company notified stock exchanges that the detailed call transcript, featuring commentary from senior management including the managing director, chief financial officer and finance leadership, has been made available on its website, improving disclosure and access to performance insights for investors and other stakeholders.

Tatva Chintan Pharma Chem Schedules Investor Meeting with Sequent Investments

Tatva Chintan Pharma Chem Limited has announced a scheduled virtual meeting with Sequent Investments on November 26, 2025. This meeting is part of the company’s ongoing investor relations efforts, where they will discuss publicly available information, ensuring no confidential or unpublished price-sensitive information is shared. This initiative reflects the company’s commitment to transparency and maintaining strong communication with its stakeholders.

Tatva Chintan Pharma Chem Clarifies Share Price Movement Amid Market Conditions

Tatva Chintan Pharma Chem Limited addressed recent price movements in its shares, attributing them to market conditions rather than undisclosed material events. The company assured stakeholders of its compliance with regulatory disclosure requirements, emphasizing that all significant information affecting its operations and share price has been transparently communicated.