Tata Chemicals Limited

NSEI:TATACHEM Stock Report

Market Cap: ₹283.1b

Tata Chemicals Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

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 (₹1111.75) is trading above our estimate of fair value (₹596.36)

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

Key Valuation Metric

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

Key metric: As TATACHEM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TATACHEM. This is calculated by dividing TATACHEM's market cap by their current revenue.
What is TATACHEM's PS Ratio?
PS Ratio1.9x
Sales₹149.93b
Market Cap₹283.11b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TATACHEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.7x
CARBORUNIV Carborundum Universal
5.8x11.3%₹277.7b
500165 Kansai Nerolac Paints
2.9x8.6%₹227.0b
506401 Deepak Nitrite
4.5x13.1%₹371.9b
500184 Himadri Speciality Chemical
5.7xn/a₹260.0b
TATACHEM Tata Chemicals
1.9x7.6%₹283.1b

Price-To-Sales vs Peers: TATACHEM is good value based on its Price-To-Sales Ratio (1.9x) compared to the peer average (4.7x).

Price to Sales Ratio vs Industry

How does TATACHEM's PS Ratio compare vs other companies in the IN Chemicals Industry?

28 CompaniesPrice / SalesEstimated GrowthMarket Cap
523630 National Fertilizers
0.3xn/aUS$708.12m
500339 Rain Industries
0.3xn/aUS$610.70m
ZUARI Zuari Agro Chemicals
0.3xn/aUS$118.23m
JAYAGROGN Jayant Agro-Organics
0.4xn/aUS$101.85m
TATACHEM 1.9xIndustry Avg. 1.8xNo. of Companies51PS01.63.24.86.48+
28 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TATACHEM is expensive based on its Price-To-Sales Ratio (1.9x) compared to the Indian Chemicals industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

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

TATACHEM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.9x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: TATACHEM is good value based on its Price-To-Sales Ratio (1.9x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TATACHEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,111.75
₹936.38
-15.8%
9.5%₹1,070.00₹820.00n/a8
Nov ’25₹1,154.75
₹936.38
-18.9%
9.5%₹1,070.00₹820.00n/a8
Oct ’25₹1,132.60
₹891.88
-21.3%
9.7%₹990.00₹745.00n/a8
Sep ’25₹1,082.65
₹891.88
-17.6%
9.7%₹990.00₹745.00n/a8
Aug ’25₹1,103.75
₹888.25
-19.5%
9.4%₹1,000.00₹780.00n/a8
Jul ’25₹1,107.35
₹887.00
-19.9%
8.9%₹990.00₹780.00n/a8
Jun ’25₹1,030.15
₹892.75
-13.3%
8.8%₹985.00₹770.00n/a8
May ’25₹1,072.15
₹878.88
-18.0%
8.2%₹985.00₹770.00n/a8
Apr ’25₹1,087.20
₹865.00
-20.4%
8.2%₹1,010.00₹780.00n/a8
Mar ’25₹968.00
₹844.29
-12.8%
5.6%₹904.00₹780.00n/a7
Feb ’25₹1,014.90
₹961.14
-5.3%
11.6%₹1,140.00₹790.00n/a7
Jan ’25₹1,117.85
₹941.14
-15.8%
11.1%₹1,140.00₹790.00n/a7
Dec ’24₹969.95
₹964.75
-0.5%
12.0%₹1,140.00₹790.00n/a8
Nov ’24₹950.35
₹1,032.86
+8.7%
7.9%₹1,140.00₹912.00₹1,154.757
Oct ’24₹1,031.20
₹1,025.71
-0.5%
7.2%₹1,130.00₹912.00₹1,132.607
Sep ’24₹1,071.15
₹1,009.71
-5.7%
8.2%₹1,130.00₹912.00₹1,082.657
Aug ’24₹1,072.90
₹1,062.29
-1.0%
7.3%₹1,150.00₹916.00₹1,103.757
Jul ’24₹1,001.40
₹1,066.57
+6.5%
7.5%₹1,150.00₹916.00₹1,107.357
Jun ’24₹968.95
₹1,108.14
+14.4%
5.2%₹1,192.00₹995.00₹1,030.157
May ’24₹952.70
₹1,123.14
+17.9%
8.7%₹1,250.00₹1,010.00₹1,072.157
Apr ’24₹972.45
₹1,126.00
+15.8%
9.0%₹1,270.00₹1,010.00₹1,087.207
Mar ’24₹994.50
₹1,138.29
+14.5%
10.0%₹1,278.00₹1,010.00₹968.007
Feb ’24₹956.15
₹1,175.00
+22.9%
10.2%₹1,345.00₹1,022.00₹1,014.907
Jan ’24₹937.15
₹1,238.57
+32.2%
7.9%₹1,345.00₹1,022.00₹1,117.857
Dec ’23₹1,048.70
₹1,274.67
+21.5%
3.5%₹1,345.00₹1,200.00₹969.956
Nov ’23₹1,142.20
₹1,269.29
+11.1%
4.2%₹1,345.00₹1,196.00₹950.357

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Paradeep Phosphates

₹90.6b

Engages in the manufacture, trade, distribution, and sale of urea and complex fertilizers in India.

PARADEEP

₹111.08

7D

5.9%

1Y

71.0%

UPL

₹409.5b

Engages in the provision of sustainable agriculture products and solutions in India, Europe, North America, Latin America, and internationally.

UPL

₹545.00

7D

-3.8%

1Y

-5.2%

Gulf Oil Lubricants India

₹54.4b

Manufactures, markets, and trades lubricating oils, greases, and other derivatives for use in the automobile and industrial sectors in India.

538567

₹1,102.05

7D

7.6%

1Y

60.8%