Tata Chemicals (NSEI:TATACHEM) - Share price, News & Analysis

TATACHEM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	4/6
Financial Health	6/6
Dividends	5/6

TATACHEM Stock Overview

Tata Chemicals Limited manufactures, sells, and distributes basic chemistry and specialty products in India, Europe, Africa, the United States, rest of Asia, and internationally.

Rewards

Price-To-Earnings ratio (16.4x) is below the Indian market (19.8x)

Earnings are forecast to grow 13.38% per year

Earnings grew by 388.6% over the past year

Pays a reliable dividend of 1.55%

Risk Analysis

No risks detected for TATACHEM from our risk checks.

Tata Chemicals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tata Chemicals
Historical stock prices
Current Share Price	₹808.00
52 Week High	₹1,158.00
52 Week Low	₹716.80
Beta	1.16
1 Month Change	-13.33%
3 Month Change	-17.14%
1 Year Change	12.86%
3 Year Change	28.95%
5 Year Change	33.13%
Change since IPO	1,046.10%

Recent News & Updates

Jun 10

Tata Chemicals' (NSE:TATACHEM) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of Tata Chemicals Limited ( NSE:TATACHEM ) has announced that it will be increasing its dividend on the 5th...

May 17

Tata Chemicals (NSE:TATACHEM) Is Increasing Its Dividend To ₹12.50

Tata Chemicals Limited ( NSE:TATACHEM ) will increase its dividend on the 5th of August to ₹12.50. This will take the...

May 03

Tata Chemicals' (NSE:TATACHEM) Upcoming Dividend Will Be Larger Than Last Year's

Tata Chemicals Limited's ( NSE:TATACHEM ) dividend will be increasing to ₹12.50 on 5th of August. This takes the...

Shareholder Returns

	TATACHEM	IN Chemicals	IN Market
7D	-3.6%	2.7%	2.3%
1Y	12.9%	-1.5%	-0.9%

Return vs Industry: TATACHEM exceeded the Indian Chemicals industry which returned -1.5% over the past year.

Return vs Market: TATACHEM exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is TATACHEM's price volatile compared to industry and market?
TATACHEM volatility
TATACHEM Average Weekly Movement	5.8%
Chemicals Industry Average Movement	6.8%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: TATACHEM is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TATACHEM's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1927	4,642	Ramakrishnan Mukundan	https://www.tatachemicals.com

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.

Tata Chemicals Fundamentals Summary

How do Tata Chemicals's earnings and revenue compare to its market cap?
TATACHEM fundamental statistics
Market Cap	₹205.79b
Earnings (TTM)	₹12.53b
Revenue (TTM)	₹126.22b

16.4x

P/E Ratio

1.6x

P/S Ratio

Is TATACHEM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TATACHEM income statement (TTM)
Revenue	₹126.22b
Cost of Revenue	₹30.85b
Gross Profit	₹95.37b
Other Expenses	₹82.84b
Earnings	₹12.53b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	49.17
Gross Margin	75.56%
Net Profit Margin	9.92%
Debt/Equity Ratio	35.6%

How did TATACHEM perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

25%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is TATACHEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TATACHEM?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TATACHEM. This is calculated by dividing TATACHEM's market cap by their current preferred multiple.
What is TATACHEM's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹205.79b

TATACHEM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	11.5x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does TATACHEM's PE Ratio compare to its peers?

TATACHEM PE Ratio vs Peers

The above table shows the PE ratio for TATACHEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	43.4x

Forward PE

Price-To-Earnings vs Peers: TATACHEM is good value based on its Price-To-Earnings Ratio (16.4x) compared to the peer average (43.4x).

Price to Earnings Ratio vs Industry

How does TATACHEM's PE Ratio compare vs other companies in the Indian Chemicals Industry?

Price-To-Earnings vs Industry: TATACHEM is good value based on its Price-To-Earnings Ratio (16.4x) compared to the Indian Chemicals industry average (16.9x)

Price to Earnings Ratio vs Fair Ratio

What is TATACHEM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TATACHEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.4x
Fair PE Ratio	21.7x

Price-To-Earnings vs Fair Ratio: TATACHEM is good value based on its Price-To-Earnings Ratio (16.4x) compared to the estimated Fair Price-To-Earnings Ratio (21.7x).

Share Price vs Fair Value

What is the Fair Price of TATACHEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TATACHEM (₹808) is trading above our estimate of fair value (₹390.15)

Significantly Below Fair Value: TATACHEM is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: TATACHEM is poor value based on its PEG Ratio (1.2x)

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Future Growth

How is Tata Chemicals forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TATACHEM's forecast earnings growth (13.4% per year) is above the savings rate (6.7%).

Earnings vs Market: TATACHEM's earnings (13.4% per year) are forecast to grow slower than the Indian market (17.4% per year).

High Growth Earnings: TATACHEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: TATACHEM's revenue (10.1% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: TATACHEM's revenue (10.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: TATACHEM's Return on Equity is forecast to be low in 3 years time (8.4%).

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Past Performance

How has Tata Chemicals performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-10.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TATACHEM has high quality earnings.

Growing Profit Margin: TATACHEM's current net profit margins (9.9%) are higher than last year (2.5%).

Past Earnings Growth Analysis

Earnings Trend: TATACHEM's earnings have declined by 10.7% per year over the past 5 years.

Accelerating Growth: TATACHEM's earnings growth over the past year (388.6%) exceeds its 5-year average (-10.7% per year).

Earnings vs Industry: TATACHEM earnings growth over the past year (388.6%) exceeded the Chemicals industry 29.6%.

Return on Equity

High ROE: TATACHEM's Return on Equity (7.3%) is considered low.

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Financial Health

How is Tata Chemicals's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TATACHEM's short term assets (₹87.5B) exceed its short term liabilities (₹71.0B).

Long Term Liabilities: TATACHEM's short term assets (₹87.5B) exceed its long term liabilities (₹75.9B).

Debt to Equity History and Analysis

Debt Level: TATACHEM's net debt to equity ratio (21.9%) is considered satisfactory.

Reducing Debt: TATACHEM's debt to equity ratio has reduced from 66.9% to 35.6% over the past 5 years.

Debt Coverage: TATACHEM's debt is well covered by operating cash flow (24.1%).

Interest Coverage: TATACHEM's interest payments on its debt are well covered by EBIT (18x coverage).

Balance Sheet

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Dividend

What is Tata Chemicals's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.55%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TATACHEM's dividend (1.55%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: TATACHEM's dividend (1.55%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: TATACHEM's dividends per share have been stable in the past 10 years.

Growing Dividend: TATACHEM's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25.4%), TATACHEM's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (86.6%), TATACHEM's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure

CEO

Ramakrishnan Mukundan (55 yo)

13.58yrs

Tenure

₹70,622,452

Compensation

Mr. Ramakrishnan Mukundan, B.E.(Elec), MBA, has been the Managing Director of Tata Chemicals Limited and Tata Chemicals North America Inc. since November 2008 and also serves as its Chief Executive Officer...

CEO Compensation Analysis

Compensation vs Market: Ramakrishnan's total compensation ($USD902.29K) is above average for companies of similar size in the Indian market ($USD643.30K).

Compensation vs Earnings: Ramakrishnan's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: TATACHEM's management team is considered experienced (4.2 years average tenure).

Board Members

Experienced Board: TATACHEM's board of directors are considered experienced (4.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31