Tata Chemicals (TATACHEM)

FairStock Score: 20/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-style value investor, I see Tata Chemicals as a commodity chemical cyclical, not a wonderful business. At ₹670.65 and a market cap of ₹17,085 Cr, the market asks a lot. The P/B of 0.81 and book value of ₹832.40 make it look like an asset play, but the Graham Number is ₹366.94, giving a margin of safety of -95.51%. My DCF intrinsic value is only ₹68.73, and EV/EBITDA is 220.66. Those numbers tell me earnings power is weak and the price is not conservative. ROE is 0.83% and ROCE is 3.96%, far below what I want. The latest quarter had sales of ₹3,550 Cr but a net loss of ₹69 Cr. Debt/Equity of 0.36 is manageable, and free cash flow of ₹94 Cr is positive, so the balance sheet is not the main problem. Sales growth of 8.24%, profit growth of 11.73%, and a five-year revenue CAGR of 7.53% are modest. Dividend yield is only 1.64%, promoter holding is 37.98%. The Piotroski F-Score is 5/9, Altman Z-Score 1.40, PEG 3.81, and FairStock Score 20/100 RISKY. Commodity chemicals often lack durable pricing power, and the returns here do not show a moat. I would wait for cycle recovery, better ROCE, and a price closer to intrinsic value. The stock may be a cyclical asset play, but not a Buffett-quality compounder at this quote.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer