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Tata Chemicals Ltd

NSE: TATACHEM BSE: 500770

695.25

(-0.49%)

Sat, 14 Feb 2026, 10:11 am

Tata Chemicals Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.9x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (4x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Tata Chemicals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Tata Chemicals's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

    future

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    Pros

    • Tata Chemicals's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Tata Chemicals's earnings are expected to increase by more than the low risk growth rate in 3 years time.
    • An improvement in Tata Chemicals's performance (ROE) is expected over the next 3 years.
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    Cons

    • Cash flow for Tata Chemicals is expected to decrease over the next 2 years.
    • Tata Chemicals's earnings are expected to grow by 14.4% yearly, however this is not considered high growth (20% yearly).
    • Tata Chemicals's earnings growth is positive but not above the India market average.
    • Tata Chemicals's earnings are expected to decrease over the next year.
    • Tata Chemicals's net income is expected to increase but not above the 50% threshold in 2 years time.
    • Tata Chemicals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Performance (ROE) is not expected to exceed the current IN Chemicals industry average.
    • Tata Chemicals's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Tata Chemicals's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
    • Tata Chemicals's revenue growth is positive but not above the India market average.

    health

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    Pros

    • Tata Chemicals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Tata Chemicals is profitable, therefore cash runway is not a concern.
    • Tata Chemicals is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (33.1%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 1.5x debt.
    • Tata Chemicals's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (134.6% vs 39.4% today).
    • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
    • Tata Chemicals's level of debt (39.4%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Tata Chemicals board of directors is about average.
    • Ramakrishnan's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Tata Chemicals management team is about average.
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    Cons

    • Ramakrishnan's remuneration is higher than average for companies of similar size in India.

    misc

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    Pros

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      Cons

      • Tata Chemicals has significant price volatility in the past 3 months.

      past

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      Pros

      • Tata Chemicals's year on year earnings growth rate has been positive over the past 5 years.
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      Cons

      • Tata Chemicals's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Tata Chemicals used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
      • Tata Chemicals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Tata Chemicals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Tata Chemicals's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.

      value

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      Pros

      • Tata Chemicals is good value based on assets compared to the IN Chemicals industry average.
      • Tata Chemicals is good value based on expected growth next year.
      • Tata Chemicals is good value based on earnings compared to the IN Chemicals industry average.
      • Tata Chemicals is good value based on earnings compared to the India market.
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      Cons

      • Tata Chemicals's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Tata Chemicals's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • TATACHEM underperformed the Chemicals industry which returned 2.2% over the past year.
      • TATACHEM underperformed the Market in India which returned -14.5% over the past year.
      • NSEI:TATACHEM is up 4.2% underperforming the Chemicals industry which returned 6.9% over the past month.
      • NSEI:TATACHEM is up 4.2% underperforming the market in India which returned 8% over the past month.

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