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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500770 | NSE: TATACHEM

Fundamental Analysis of Tata Chemicals Ltd

Basic Stock Data of Tata Chemicals Ltd

Last Updated: June 17, 2024, 8:34 pm

Market Cap 28,173 Cr.
Current Price 1,106
High / Low1,350/933
Stock P/E57.8
Book Value 873
Dividend Yield1.36 %
ROCE7.81 %
ROE2.32 %
Face Value 10.0
PEG Ratio-2.45

Competitors of Tata Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Alkalies & Chemicals Ltd 5,711 Cr. 778870/615 8273.05 %3.83 %3.88 % 10.0
Caprolactam Chemicals Ltd 26.2 Cr. 57.173.2/44.2131 12.10.00 %6.86 %3.67 % 10.0
Standard Industries Ltd 159 Cr. 24.728.2/20.2 21.24.25 %1.55 %0.09 % 5.00
Industry Average1,965.40 Cr286.6043.67286.772.43%4.08%2.55%8.33

Tata Chemicals Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,6062,6362,9783,0233,1413,4813,9954,2394,1484,4074,2183,9983,730
Expenses2,1342,3532,3772,5222,5952,8242,9803,3193,3173,4423,1753,1913,188
Operating Profit4722836015015466571,0159208319651,043807542
OPM %18%11%20%17%17%19%25%22%20%22%25%20%15%
Other Income49741051231431057110230866718798
Interest8185818469698086107133123145132
Depreciation185192197200204205213218227234229234246
Profit before tax25580428340416488793718527684758615262
Tax %21%64%20%21%16%9%20%5%19%-1%23%20%26%
Net Profit20129342268350445637680425692587495194
EPS in Rs6.310.4611.308.6812.2117.1923.1224.6515.3527.8320.8816.806.20

Last Updated: May 6, 2024, 10:51 pm

Tata Chemicals Ltd Quarterly Chart

Tata Chemicals Ltd Profit & Loss

Last Updated: May 27, 2024, 5:22 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales13,81514,71115,88517,20414,87310,34610,27010,33710,35710,20012,62216,78916,353
Expenses11,51413,09615,20015,30512,7778,2496,9268,5388,4118,69310,31712,96912,996
Operating Profit2,3011,6156861,9002,0962,0973,3441,7991,9451,5062,3053,8203,357
OPM %17%11%4%11%14%20%33%17%19%15%18%23%21%
Other Income18296-1541832102932627856,480254486218438
Interest427464579461525297326354342367303406533
Depreciation509534471463526512518568666759806892943
Profit before tax1,383913-5191,1591,2551,5802,7631,6617,4166341,6822,7402,319
Tax %25%33%-56%30%20%22%2%17%3%31%16%11%
Net Profit1,037607-8118021,0061,2342,7021,3877,2284361,4052,4341,968
EPS in Rs32.8715.71-40.5023.4130.2438.9895.4945.37274.9710.0649.3790.9371.71
Dividend Payout %30%64%-25%53%33%28%23%28%4%99%25%19%

Tata Chemicals Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-41.47%-233.61%198.89%25.44%22.66%118.96%-48.67%421.12%-93.97%222.25%73.24%
Change in YoY Net Profit Growth (%)0.00%-192.14%432.50%-173.45%-2.77%96.30%-167.63%469.79%-515.09%316.22%-149.01%

Tata Chemicals Ltd Growth

Compounded Sales Growth
10 Years:0%
5 Years:8%
3 Years:15%
TTM:-8%
Compounded Profit Growth
10 Years:10%
5 Years:-13%
3 Years:27%
TTM:-79%
Stock Price CAGR
10 Years:22%
5 Years:32%
3 Years:16%
1 Year:14%
Return on Equity
10 Years:14%
5 Years:13%
3 Years:7%
Last Year:2%

Last Updated: June 13, 2024, 3:29 am

Tata Chemicals Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital255255255255255255255255255255255255255
Reserves6,0816,1595,3115,2976,6007,65310,84712,08612,64314,03517,99819,46621,148
Borrowings7,0618,3848,3938,3799,0907,0726,1086,1307,7026,9337,0246,2966,048
Other Liabilities5,5365,2886,1276,8728,4028,6078,6488,3987,0737,1158,5668,9238,456
Total Liabilities18,93320,08620,08620,80224,34623,58725,85826,86927,67328,33733,84334,94035,907
Fixed Assets10,75310,70611,00711,35913,28012,64412,78713,55115,35615,26116,04417,09218,172
CWIP5495924681893503334097748351,0941,6682,4102,071
Investments6106004414432,1882,7872,8405,6154,2855,8167,6837,4487,920
Other Assets7,0218,1898,1718,8118,5287,8229,8226,9297,1986,1678,4487,9907,744
Total Assets18,93320,08620,08620,80224,34623,58725,85826,86927,67328,33733,84334,94035,907

Tata Chemicals Ltd Reserves and Borrowings Chart

Tata Chemicals Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,2152212,3381,2742,3323,5311,8701,5811,7802,0371,6452,971
Cash from Investing Activity -688-177-563-663-463-9852,714-1,927-2,285-1,147-817-1,149
Cash from Financing Activity -195129-1,865-1,087-1,802-2,341-2,089-1,712-129-1,456-755-2,076
Net Cash Flow333173-91-477682052,494-2,058-634-56573-254

Tata Chemicals Ltd Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-5.00-7.00678.00-7.00-7.00-5.00-3.00-5.00-6.00-5.00-5.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Tata Chemicals Ltd Free Cash Flow Chart

Tata Chemicals Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days618574738874465156505657
Inventory Days12010196137119244304315347257318282
Days Payable16913311913899232307269302256338289
Cash Conversion Cycle12535272107864397100513550
Working Capital Days-023452375213211-35276342
ROCE %15%10%3%11%11%10%16%9%36%4%8%12%

Tata Chemicals Ltd Financial Efficiency Indicators Chart

Tata Chemicals Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters37.98%37.98%37.98%37.98%37.98%37.98%37.98%37.98%37.98%37.98%37.98%37.98%
FIIs13.02%14.45%13.96%13.62%14.99%14.92%14.43%14.59%14.47%14.16%14.07%13.84%
DIIs19.66%20.02%18.32%19.89%19.14%19.42%18.97%19.77%19.91%20.91%20.44%19.97%
Government0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%
Public29.31%27.53%29.71%28.48%27.86%27.64%28.60%27.64%27.63%26.92%27.49%28.18%
No. of Shareholders5,10,2665,06,3566,34,3586,22,7916,22,1246,14,0166,33,3596,21,4836,55,1666,51,2746,70,0667,58,572

Tata Chemicals Ltd Shareholding Pattern Chart

No. of Tata Chemicals Ltd Shareholders

Tata Chemicals Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan4,260,0000.74437.95149,6002024-06-172747.59%
Kotak Flexicap Fund - Regular Plan3,750,0000.87385.52149,6002024-06-172406.68%
Kotak Equity Opportunities Fund - Regular Plan2,064,8841.16212.28149,6002024-06-171280.27%
Nippon India Growth Fund1,561,4270.66160.52149,6002024-06-17943.73%
DSP Mid Cap Fund1,382,0530.86142.08149,6002024-06-17823.83%
DSP Equity Opportunities Fund717,4590.6973.76149,6002024-06-17379.58%
HDFC Large and Mid Cap Fund - Regular Plan508,0000.3352.22149,6002024-06-17239.57%
Quant Active Fund217,0000.2722.31149,6002024-06-1745.05%
Edelweiss Arbitrage Fund149,6000.1915.38149,6002024-06-170%
Kotak Multicap Fund143,5000.1714.75149,6002024-06-17-4.08%

Tata Chemicals Ltd ROCE Trend

Tata Chemicals Ltd EPS Trend

Tata Chemicals Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.5290.9549.3710.06275.02
Diluted EPS (Rs.)10.5290.9549.3710.06275.02
Cash EPS (Rs.)52.82130.4377.9145.91309.96
Book Value[Excl.RevalReserv]/Share (Rs.)906.43809.49751.80594.25536.12
Book Value[Incl.RevalReserv]/Share (Rs.)906.43809.49751.80594.25536.12
Revenue From Operations / Share (Rs.)604.75658.39495.33400.27406.43
PBDIT / Share (Rs.)122.86158.43100.4968.0988.70
PBIT / Share (Rs.)84.43123.4568.8538.2962.55
PBT / Share (Rs.)29.88107.4556.5323.8749.13
Net Profit / Share (Rs.)14.3995.4546.2716.11283.81
NP After MI And SOA / Share (Rs.)10.5190.8649.3510.06274.95
PBDIT Margin (%)20.3124.0620.2817.0121.82
PBIT Margin (%)13.9618.7513.909.5615.38
PBT Margin (%)4.9416.3211.415.9612.08
Net Profit Margin (%)2.3714.499.344.0269.82
NP After MI And SOA Margin (%)1.7313.809.962.5167.64
Return on Networth / Equity (%)1.2011.746.881.7954.32
Return on Capital Employeed (%)7.0110.436.554.087.71
Return On Assets (%)0.726.603.710.9025.30
Long Term Debt / Equity (X)0.140.280.200.360.26
Total Debt / Equity (X)0.250.300.370.380.41
Asset Turnover Ratio (%)0.420.480.400.140.14
Current Ratio (X)1.051.661.231.491.11
Quick Ratio (X)0.631.150.901.110.84
Inventory Turnover Ratio (X)1.071.221.220.500.44
Dividend Payout Ratio (NP) (%)0.0013.7220.25109.305.47
Dividend Payout Ratio (CP) (%)0.009.9012.3427.595.00
Earning Retention Ratio (%)0.0086.2879.75-9.3094.53
Cash Earning Retention Ratio (%)0.0090.1087.6672.4195.00
Interest Coverage Ratio (X)5.919.958.464.726.61
Interest Coverage Ratio (Post Tax) (X)3.347.044.912.124.02
Enterprise Value (Cr.)33346.3031130.1031228.9624062.009753.04
EV / Net Operating Revenue (X)2.161.852.472.360.94
EV / EBITDA (X)10.647.7112.2013.874.31
MarketCap / Net Operating Revenue (X)1.791.481.971.880.54
Retention Ratios (%)0.0086.2779.74-9.3094.52
Price / BV (X)1.241.261.361.340.44
Price / Net Operating Revenue (X)1.791.481.971.880.54
EarningsYield0.010.090.050.011.23

Tata Chemicals Ltd Profitability Ratios (%)

Tata Chemicals Ltd Liquidity Ratios

Tata Chemicals Ltd Liquidity Ratios (%)

Tata Chemicals Ltd Interest Coverage Ratios (%)

Tata Chemicals Ltd Valuation Ratios

Fair Value

Fair Value: 1,186.58

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 7.29% compared to the current price 1106

Intrinsic Value: 906.89

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 18.00% compared to the current price ₹1106

Last 5 Year EPS CAGR: -23.57%

*Investments are subject to market risks

Strength and Weakness of Tata Chemicals Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of 27.25, which is a positive sign.
  2. The company has higher reserves (11,178.77 cr) compared to borrowings (7,278.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (12.85 cr) and profit (80.54 cr) over the years.
  1. The stock has a low average ROCE of 12.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 63.17, which may not be favorable.

Should I Buy Tata Chemicals Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tata Chemicals Ltd:
    1. Net Profit Margin: 2.37%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 7.01% (Industry Average ROCE: 6.17%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 1.20% (Industry Average ROE: 3.29%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.34
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.63
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 57.8 (Industry average Stock P/E: 63.23)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Tata Chemicals Ltd

Tata Chemicals Ltd. is a Public Limited Listed company incorporated on 23/01/1939 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24239MH1939PLC002893 and registration number is 002893. Currently Company is involved in the business activities of Manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms. Company’s Total Operating Revenue is Rs. 3720.93 Cr. and Equity Capital is Rs. 254.82 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Inorganic - Caustic Soda/Soda AshBombay House, 24, Homi Mody Street, Mumbai Maharashtra 400001investors@tatachemicals.com
http://www.tatachemicals.com
Management
NamePosition Held
Mr. Ratan N TataChairman Emeritus
Mr. N ChandrasekaranChairman
Mr. R MukundanManaging Director & CEO
Mr. Zarir LangranaExecutive Director
Mr. S PadmanabhanNon Executive Director
Mr. Rajiv DubeIndependent Director
Dr. C V NatrajIndependent Director
Mr. K B S AnandIndependent Director
Ms. Vibha Paul RishiIndependent Director
Mrs. Padmini Khare KaickerIndependent Director

FAQ

What is the latest fair value of Tata Chemicals Ltd?

The latest fair value of Tata Chemicals Ltd is ₹1186.58.

What is the Market Cap of Tata Chemicals Ltd?

The Market Cap of Tata Chemicals Ltd is 28,173 Cr..

What is the current Stock Price of Tata Chemicals Ltd as on 23 June 2024?

The current stock price of Tata Chemicals Ltd as on 23 June 2024 is ₹1,106.

What is the High / Low of Tata Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Tata Chemicals Ltd stocks is 1,350/933.

What is the Stock P/E of Tata Chemicals Ltd?

The Stock P/E of Tata Chemicals Ltd is 57.8.

What is the Book Value of Tata Chemicals Ltd?

The Book Value of Tata Chemicals Ltd is 873.

What is the Dividend Yield of Tata Chemicals Ltd?

The Dividend Yield of Tata Chemicals Ltd is 1.36 %.

What is the ROCE of Tata Chemicals Ltd?

The ROCE of Tata Chemicals Ltd is 7.81 %.

What is the ROE of Tata Chemicals Ltd?

The ROE of Tata Chemicals Ltd is 2.32 %.

What is the Face Value of Tata Chemicals Ltd?

The Face Value of Tata Chemicals Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Chemicals Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE