Tata Chemicals Ltd logo

Tata Chemicals Ltd

TATACHEM NSE

Incorporated in 1939, Tata Chemicals Ltd manufactures and exports basic chemistry and specialty products [1]

AI Verdict: SELL Confidence: 6%

Tata Chemicals trades at a negative PE of -10.9 with severely deteriorating profitability (3-year profit CAGR of -51%) and weak ROE of just 1% last year. While the stock trades below book value at 0.88x P/B, the fundamental deterioration and majority sell ratings from analysts (50% sell) make this a avoid until turnaround evidence emerges.

Key Fundamentals

Volatility
Moderate
EBITDA
₹2,121 Cr
Return on Equity
1.94%
Debt to Equity
0.35
EPS
₹29.55
52W High
₹1,026.65
52W Low
₹580.3

Technical Indicators

Key Insights

Strengths

2
  • Stock is trading at 0.88 times its book value
  • Company has been maintaining a healthy dividend payout of 82.4%

Weaknesses

3
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 7.41% over past five years.
  • Company has a low return on equity of 1.59% over last 3 years.

Growth Rate

Revenue Growth
-1.40% ↗
Net Income Growth
-584.46% ↗
Cash Flow Change
-27.94% ↘
ROE
-592.36% ↘
ROCE
-178.43% ↗
EBITDA Margin (Avg.)
-1.25% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 1d ago
SELL
Risk high

Tata Chemicals trades at a negative PE of -10.9 with severely deteriorating profitability (3-year profit CAGR of -51%) and weak ROE of just 1% last year. While the stock trades below book value at 0.88x P/B, the fundamental deterioration and majority sell ratings from analysts (50% sell) make this a avoid until turnaround evidence emerges.

Bull Case 7
  • Stock trades at 0.88x book value, offering a margin of safety below liquidation value for patient investors
  • Healthy dividend payout ratio of 82.4% with current dividend yield of 1.5%, providing income support during the downturn
  • 10-year stock CAGR of 15% demonstrates long-term wealth creation capability through business cycles
  • 10-year ROE average of 10% suggests the business has historically earned adequate returns on equity
  • 5-year compounded sales growth of 7% indicates the core business has some underlying revenue momentum
  • TTM profit growth turned positive at 3%, potentially signaling early stages of earnings recovery
  • Market cap of Rs 18,783 Cr provides reasonable scale and liquidity for institutional participation
Bear Case 8
  • Negative PE ratio of -10.9 indicates the company is currently loss-making at the consolidated level
  • 3-year compounded profit CAGR of -51% reflects catastrophic earnings destruction over a meaningful period
  • 50% of analysts rate the stock a Sell with only 16.67% recommending Buy, reflecting deep professional skepticism
  • Last year ROE of just 1% shows near-zero return generation on shareholder equity
  • Stock has declined 19% over 1 year and delivered -9% CAGR over 3 years, signaling sustained value destruction
  • Low interest coverage ratio indicates debt servicing strain on operating cash flows
  • TTM sales growth of -2% shows the revenue base is now contracting
  • 10-year compounded sales growth of 0% means the company has failed to grow its topline over a full decade in nominal terms

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 3
  • Gujarat HC rejects wastewater claim May 28

    Gujarat High Court rejected Tata Chemicals' claim over legacy wastewater channels at Mithapur on May 25, 2026. Gujarat Pollution Control Board ordered to determine remediation measures within three months; financial impact unquantified.

  • Tata Sons listing uncertainty risk Jun 1

    If Tata Sons successfully restructures to avoid listing, Tata Chemicals' estimated ₹21,000 crore stake value remains trapped in illiquid form. Noel Tata actively opposes listing, creating decision paralysis among trustees.

  • Negative standalone business valuation Jun 1

    Market cap of ₹19,311 crore is less than the estimated ₹21,000 crore Tata Sons stake, implying the core chemical business carries a negative valuation of ~₹1,000 crore with no fundamental floor on corrections.

Positives 3
  • ₹11 per share dividend declared Jun 4

    Tata Chemicals announced ₹11 per share dividend for FY26. The 87th AGM is scheduled for June 26, 2026.

  • Tata Sons listing probability 70% Jun 1

    RBI's April 2026 draft circular with ₹1 lakh crore asset threshold makes listing avoidance difficult for Tata Sons (₹1.75 lakh crore in assets). Probability-weighted analysis suggests 70% chance of listing within 2-3 years, which would unlock ₹21,000 crore stake value.

  • Domestic margins expanding Jun 1

    Core business reported steady Q4 FY26 performance with domestic margins expanding 120 basis points, showing operational improvement despite market focus on Tata Sons angle.

Neutral 4
  • Trading window closed for Q1FY26 Jun 22

    Tata Chemicals shut trading window from June 24, 2026, ahead of Q1FY26 results. Window reopens 48 hours after results declaration.

  • Investor meetings scheduled Jun 13

    Tata Chemicals to meet Quantum Advisors and ICICI Prudential on June 17-18. No unpublished price sensitive information to be shared.

  • BRSR filed for FY26 Jun 4

    Filed Business Responsibility and Sustainability Report for FY26 reporting total Scope 1 emissions of 48,50,029 metric tonnes.

  • Stock acts as Tata Sons proxy Jun 1

    Stock swung 15% in 60 days on Tata Sons listing rumors. A 10% shift in Tata Sons stake value translates to ~10% move in Tata Chemicals' market cap due to 103% valuation concentration.

TL;DR: Tata Chemicals is essentially a leveraged bet on a Tata Sons IPO, with its 3% stake (worth ~₹21,000 crore) exceeding its own market cap of ₹19,311 crore. The core chemical business is operationally stable with expanding domestic margins, and a ₹11 dividend provides modest income support. Key risks include regulatory/legal exposure from the Gujarat HC wastewater order and binary outcome risk on whether Tata Sons actually lists. With RBI regulatory pressure mounting and a 70% probability of listing within 2-3 years, the trend favors value unlocking but expect continued high volatility driven by corporate action news rather than sector fundamentals.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
4,407
4,218
3,998
3,730
3,475
3,789
3,999
3,590
3,509
3,719
3,877
3,550
3,438
Expenses
3,442
3,175
3,191
3,188
3,032
3,215
3,381
3,156
3,182
3,070
3,340
3,205
3,164
Operating Profit
965
1,043
807
542
443
574
618
434
327
649
537
345
274
OPM %
22%
25%
20%
15%
13%
15%
15%
12%
9%
17%
14%
10%
8%
Other Income
86
67
187
98
-861
116
152
-10
29
138
128
21
-1,760
Interest
133
123
145
132
130
133
145
148
137
147
144
146
153
Depreciation
234
229
234
246
271
273
277
280
293
280
285
293
343
PBT
684
758
615
262
-819
284
348
-4
-74
360
236
-73
-1,982
Tax %
-1%
23%
20%
26%
3%
33%
23%
425%
-34%
12%
35%
-5%
7%
Net Profit
692
587
495
194
-841
190
267
-21
-49
316
154
-69
-2,116
EPS in Rs
27.83
20.88
16.8
6.2
-33.36
5.89
7.61
-2.08
-2.2
9.89
3.02
-3.65
-83.67
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
17,204
14,873
10,346
10,270
10,337
10,357
10,200
12,622
16,789
15,421
14,887
14,584
Expenses
15,305
12,777
8,249
6,926
8,538
8,411
8,693
10,303
12,969
12,574
12,934
12,779
Operating Profit
1,900
2,096
2,097
3,344
1,799
1,945
1,506
2,319
3,820
2,847
1,953
1,805
OPM %
11%
14%
20%
33%
17%
19%
15%
18%
23%
18%
13%
12%
Other Income
183
210
293
262
785
6,480
254
472
218
-507
287
-1,473
Interest
461
525
297
326
354
342
367
303
406
530
563
590
Depreciation
463
526
512
518
568
666
759
806
892
980
1,123
1,201
PBT
1,159
1,255
1,580
2,763
1,661
7,416
634
1,682
2,740
830
554
-1,459
Tax %
30%
20%
22%
2%
17%
3%
31%
16%
11%
46%
30%
18%
Net Profit
802
1,006
1,234
2,702
1,387
7,228
436
1,405
2,434
435
387
-1,715
EPS in Rs
23.41
30.24
38.98
95.49
45.37
275
10.06
49.36
90.93
10.52
9.22
-74.41
Div. Payout %
53%
33%
28%
23%
28%
4%
99%
25%
19%
143%
119%
-15%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
255
255
255
255
255
255
255
255
255
255
255
255
Reserves
5,297
6,600
7,653
10,847
12,086
12,643
14,035
17,998
19,466
21,986
21,339
20,951
Borrowings
8,379
9,090
7,072
6,108
6,130
7,702
6,933
7,025
6,296
5,563
7,072
8,001
Other Liabilities
6,872
8,402
8,607
8,648
8,398
7,073
7,115
8,566
8,923
8,907
9,084
9,791
Total Liabilities
20,802
24,346
23,587
25,858
26,869
27,673
28,337
33,843
34,940
36,711
37,750
38,998
Fixed Assets
11,359
13,431
12,644
12,787
13,551
15,356
15,261
16,044
17,092
17,861
19,600
20,602
CWIP
189
350
333
409
774
835
1,094
1,667
2,410
2,217
1,913
1,038
Investments
443
2,188
2,787
2,840
5,615
4,285
5,816
7,683
7,448
9,739
9,144
9,886
Other Assets
8,811
8,377
7,822
9,822
6,929
7,198
6,167
8,449
7,990
6,894
7,093
7,472
Total Assets
20,802
24,346
23,587
25,858
26,869
27,673
28,337
33,843
34,940
36,711
37,750
38,998
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
1,274
2,332
3,531
1,870
1,581
1,780
2,037
1,644
2,971
3,016
1,761
1,269
Investing
-663
-463
-985
2,714
-1,927
-2,285
-1,147
-817
-1,149
-605
-1,667
-766
Financing
-1,087
-1,802
-2,341
-2,089
-1,712
-129
-1,456
-755
-2,076
-2,494
29
-670
Net Cash Flow
-477
68
205
2,494
-2,058
-634
-565
72
-254
-83
123
-167
Free Cash Flow
709
1,645
2,888
1,140
502
611
804
379
1,427
1,193
-191
129
CFO/OP
86
129
190
71
115
99
142
82
88
120
102
67
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
73
88
74
46
51
56
50
56
57
45
47
52
Inventory Days
137
119
244
304
315
347
257
317
282
341
324
353
Days Payable
138
99
232
307
269
302
256
338
289
320
318
293
Cash Conversion Cycle
72
107
86
43
97
100
51
35
50
66
53
113
Working Capital Days
-4
31
-4
27
-2
-102
-28
-29
29
-22
-21
-17
ROCE %
11%
11%
10%
16%
9%
36%
4%
8%
12%
8%
4%
3%

Shareholding Pattern

As of Mar 2026
Promoters 37.98%
Public 27.25%
DIIs 22.83%
FIIs 11.90%
Government 0.03%
Total 99.99%
  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
37.98%
37.98%
37.98%
37.98%
37.98%
37.98%
37.98%
37.98%
37.98%
37.98%
37.98%
37.98%
FIIs
14.47%
14.16%
14.07%
13.84%
13.76%
13.56%
13.60%
13.29%
12.85%
13.73%
12.26%
11.90%
DIIs
19.91%
20.91%
20.44%
19.97%
19.91%
20.34%
21.68%
21.96%
22.61%
22.17%
22.40%
22.83%
Government
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
0.03%
Public
27.63%
26.92%
27.49%
28.18%
28.31%
28.08%
26.72%
26.73%
26.53%
26.07%
27.34%
27.25%
No. of Shareholders
6,55,166
6,51,274
6,70,066
7,58,572
7,45,594
7,30,528
6,87,065
6,86,973
6,77,130
6,50,693
6,50,585
6,43,078

Documents

1
Concall - May 2017 May 2017
2
Concall - May 2019 May 2019
3
Concall - Jul 2020 Jul 2020
4
Concall - May 2026 May 2026
5
Concall - May 2026 May 2026

Frequently Asked Questions about Tata Chemicals Ltd

What does Tata Chemicals Ltd do?
Incorporated in 1939, Tata Chemicals Ltd manufactures and exports basic chemistry and specialty products [1]
Where is Tata Chemicals Ltd (TATACHEM) listed?
Tata Chemicals Ltd is listed on the Indian stock exchanges. It is listed on NSE: TATACHEM and BSE: 500770. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Tata Chemicals Ltd belong to?
Tata Chemicals Ltd operates in the Commodities sector within the Chemicals & Petrochemicals industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the 52-week high and low of Tata Chemicals Ltd?
Over the past 52 weeks, Tata Chemicals Ltd has traded between a low of ₹580.3 and a high of ₹1,026.65. This range helps investors understand the stock's price volatility and recent trading levels.
What is the Return on Equity (ROE) of Tata Chemicals Ltd?
Tata Chemicals Ltd has a Return on Equity (ROE) of 1.94%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Tata Chemicals Ltd on Tapetide?
On Tapetide, you can view Tata Chemicals Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 1939, Tata Chemicals Ltd manufactures and exports basic chemistry and specialty products [1]

Website tatachemicals.com
CEO Mr. Ramakrishnan Mukundan B.E.(Elec), MBA
Employees 4,789
Listed 1999-04-01
Face Value ₹ 10
Issued Size 25,47,56,278

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