Tata Chemicals Ltd.
NSE: TATACHEMTata Chemicals Ltd.: A 30-second snapshot
Tata Chemicals (TATACHEM) trades at ₹772, up 9.67% over 3 months but down 3.43% over 12 months and 4.9% below its 200-DMA of ₹810.73. The company carries a debt-to-equity ratio of 32.1 with a profit margin of 1.23% and a quality score of 40 — ranking 4th of 6 peers in the NSE Chemicals sector. Forward PE stands at 22.3 against a trailing PE that is unavailable, reflecting market expectations of earnings normalisation.
P/E
—
Forward P/E
22.3
ROE
—
Debt / Equity
32.13
Profit Margin
+1.2%
Div. Yield
+1.4%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
31/100
Recent context
- ·No news articles were collected for this run; event-driven context — earnings announcements, regulatory developments, or management actions — cannot be assessed from available data.
- ·The 3-month price gain of 9.67% lifted the stock above its 50-DMA but leaves it still below the 200-DMA, with resistance levels clustered at ₹773.7, ₹780.4, and ₹788.6 immediately above the current price of ₹772.
- ·Analyst mean rating of 3.67 across 9 analysts (1–5 scale, lower = more constructive) sits in the mid-range; forward PE of 22.3 prices in earnings recovery that is not yet visible in the current 1.23% profit margin.
Strengths
- +FCF was positive in 3 of the available historical years, suggesting the business can generate cash despite the current thin-margin environment.
- +Dividend yield of 1.37% indicates the company has maintained distributions, providing some return to shareholders even in a compressed-margin period.
- +Price is 10.1% above the 50-DMA of ₹701.04, and RSI of 57.3 is in neutral territory — neither overbought nor oversold — after a 9.67% 3-month advance.
- +Tata group parentage positions TATACHEM within a conglomerate structure that historically provides balance-sheet access and strategic optionality not visible in standalone metrics.
Weaknesses
- −Debt-to-equity of 32.1 is significantly above typical chemicals sector norms; a rising debt trend compounds this structural vulnerability.
- −Profit margin of 1.23% offers minimal buffer against cost inflation or revenue softness; trailing PE is unavailable, consistent with earnings distortion at this margin level.
- −Revenue has contracted at a 5-year CAGR of -1.1% with zero years of ROE above 15% and a consistency score of 0, indicating no persistent return-generation track record.
- −Quality score of 40 ranks 4th of 6 sector peers, trailing PIDILITIND (66), SOLARINDS (57), and SRF (41); the stock has underperformed on a 12-month basis against a peer group where priceChange1Y data is largely unavailable for comparison.
Open questions
- ?Does the elevated D/E ratio of 32.1 reflect a legacy of capital-intensive diversification into new businesses (e.g. specialty chemicals, lithium), and is the debt serviced by stable cash flows or reliant on refinancing?
- ?How much of the 5-year revenue decline of -1.1% CAGR stems from deliberate portfolio rationalisation versus market-share or pricing pressure in core segments?
- ?Given that forward PE (22.3) implies meaningful earnings recovery while current margins are near 1%, what specific operational or pricing levers would need to materialise to justify that multiple?
- ?How does TATACHEM's balance-sheet trajectory compare to its 52-week high period — has leverage increased or decreased since the stock traded near its high, and what drove the 24.8% drawdown?
Peer comparison: Chemicals
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| TATACHEM | Tata Chemicals Ltd.You're viewing | — | — | 40 |
| Industry avg | across 5 peers | 52.7 | +17.6% | 44 |
| PIDILITIND | Pidilite Industries Ltd. | 61.2 | +23.5% | 66 |
| SOLARINDS | Solar Industries India Ltd. | 98.0 | — | 57 |
| SRF | SRF Ltd. | 44.4 | +13.8% | 41 |
| COROMANDEL | Coromandel International Ltd. | 28.5 | +15.6% | 30 |
| PIIND | PI Industries Ltd. | 31.6 | — | 25 |
Technical state
Current price
₹772.00
SMA 50
₹701.04
SMA 200
₹810.73
RSI (14)
57.3 (neutral)
From 52w high
-24.8%
1Y return
-3.4%
3M return
+9.7%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 32.1 is extremely elevated for a non-financial chemicals company; this level of leverage amplifies downside in any revenue or margin stress scenario.
- highProfit margin of 1.23% is near breakeven, and trailing PE is unavailable (likely negative or distorted earnings); FCF-positive in only 3 of available years with zero years of ROE above 15% and a rising debt trend.
- mediumPrice is 24.8% below its 52-week high and 4.9% below the 200-DMA (₹810.73), indicating sustained medium-term underperformance; down 3.43% over 12 months.
- mediumQuality score of 40 ranks 4th of 6 peers in the Chemicals sector; revenue has contracted at a 5-year CAGR of -1.1% with no measurable earnings growth trend available.
- lowZero news articles collected; sentiment analysis is based on no data, so news-driven risk cannot be assessed for this run.
Cross-section contradictions
- Price is up 9.67% over 3 months and above the 50-DMA (₹701), suggesting a near-term recovery, yet the stock remains 24.8% off its 52-week high and below the 200-DMA — a short-term bounce inside a longer downtrend.
- Analyst mean rating of 3.67 across 9 analysts (1–5 scale, lower = more constructive) sits toward the middle-to-cautious end of the scale, yet forward PE of 22.3 implies the market is pricing in meaningful earnings recovery despite near-zero current margins.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days