Tata Chemicals Ltd

NSE: TATACHEM BSE: 500770

₹729.95

(0.85%)

Mon, 25 May 2026, 06:52 am

Market Cap187.67B

PE Ratio0

Dividend1.49

Process Industries

Chemicals: Agricultural

24.5K

Tata Chemicals Analysis

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%).

Cons

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.

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.

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%).

Cons

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.

Cons

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

Pros

Cons

Pros

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

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.

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.

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.