Looking for Tata Chemicals share price targets for 2024-2030. However, to see complete technical and fundamental analysis of its future prospects, read our complete tata chemicals case study.
Before looking at the future targets of TATA Chemicals, let’s first understand what it does and how it operates.
What is Tata Chemicals Ltd.?
Tata Chemicals Limited is focused on providing chemistry solutions. The company operates through two basic segments:
- Basic Chemistry Products and
- Specialty Products.
Basic Chemistry Products segment has products including soda ash, salt, sodium bicarbonate etc. catering to varied industries such as glass, detergent, food and pharmaceuticals. The company has manufacturing facilities spread across four continents, North America, Europe, Africa and Asia.
Specialty Products segment includes products silica, prebiotics, and Agri inputs, catering to industries such as food, rubber and agriculture. It also through its subsidiary Rallis India Limited provides Agri inputs such as seeds to the farming community both in India and internationally.
Company Profile
| Company | Tata Chemicals Ltd. |
|---|---|
| Company type | Public |
| Traded as | BSE: 500770, NSE: TATACHEM |
| Industry | Chemicals |
| Founded | 1939; 85 years ago |
| Headquarters | Mumbai, Maharashtra, India |
| Area served | Global |
| Key people | Natarajan Chandrasekaran (Chairman), Ramakrishnan Mukundan (MD & CEO) |
| Products | Basic and industrial chemicals, nitrogenous and phosphatic fertilizers, industrial refinishing products, coatings and crop nutritions |
| Revenue | ₹17,007 crore (US$2.1 billion) (2023) |
| Operating income | ₹2,930 crore (US$370 million) (2023) |
| Net income | ₹2,317 crore (US$290 million) (2023) |
| Total assets | ₹35,084 crore (US$4.4 billion) (2023) |
| Total equity | ₹19,721 crore (US$2.5 billion) (2023) |
| Parent | Tata Group |
| Subsidiaries | Tata Chemicals Europe, British Salt, Tata Swach, Magadi Soda Company, Rallis India |
| Website | www.tatachemicals.com |
Tata Chemicals Ltd. Fundamental Analysis
| Market Cap | ₹ 33,506.82 Cr. |
| Enterprise Value | ₹ 33,421.82 Cr. |
| No. of Shares | 25.48 Cr. |
| P/E | 37.56 |
| P/B | 1.94 |
| Face Value | ₹ 10 |
| Div. Yield | 1.33% |
| Book Value (TTM) | ₹ 676.40 |
| Cash | ₹ 85 Cr. |
| Debt | ₹ 0 Cr. |
| Promoter Holding | 37.98% |
| EPS (TTM) | ₹ 35.01 |
| Sales Growth | 32.49% |
| ROE | 6.56% |
| ROCE | 8.24% |
| Profit Growth | 30.50% |
Tata Chemicals Ltd. Profit & Loss Report
| TATA Chemicals Ltd. | MAR 2019 | MAR 2020 | MAR 2021 | MAR 2022 | MAR 2023 |
|---|---|---|---|---|---|
| Net Sales (Cr.) | 3,121.25 | 2,920.29 | 2,998.88 | 3,721 | 4,930 |
| Total Expenditure (Cr.) | 2,434.61 | 2,202.25 | 2,388 | 2,776 | 4,514 |
| Operating Profit (Cr.) | 686.64 | 718.04 | 610.88 | 945 | 416 |
| Other Income (Cr.) | 412.47 | 309.15 | 219.15 | 284 | 1,120 |
| Interest (Cr.) | 98.29 | 43.37 | 18.74 | 19 | 26 |
| Depreciation (Cr.) | 140.34 | 149.50 | 197.32 | 222 | 245 |
| Exceptional Items (Cr.) | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax (Cr.) | 860.48 | 834.32 | 613.97 | 988 | 1,265 |
| Tax (Cr.) | 229.67 | 162.50 | 134.86 | 201 | 238 |
| Net Profit (Cr.) | 854.84 | 6,840.22 | 479.11 | 802 | 1,027 |
| Adjusted EPS (Rs.) | 24.76 | 26.37 | 18.81 | 30.86 | 40.27 |
In 2023, Indian stocks like TATACHEM witnessed a significant Bull run, setting a positive tone for the market. As the first quarter of 2024 unfolds, it is anticipated that the bullish sentiment will persist, albeit with some initial consolidation. Based on technical analysis, the projected share price targets for TATACHEM in 2024 are as follows:
| Year | Minimum Tata Chemicals Share Price Target 2024 (₹) | Maximum Tata Chemicals Share Price Target 2024 (₹) |
|---|---|---|
| 2024 | ₹1400.75 | ₹1700.35 |
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| Year | Minimum Tata Chemicals Share Price Target 2025 (₹) | Maximum Tata Chemicals Share Price Target 2025 (₹) |
|---|---|---|
| 2025 | ₹1705.75 | ₹1925.35 |
In January 2025, the expected share price of TATACHEM is forecasted to reach Rs. 1705.18. If both macro and microeconomic factors, along with industry trends, remain supportive, there’s a possibility that the target price for Tata Chemicals Ltd could rise to Rs. 1925.27 by December 2025.
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| Year | Minimum Tata Chemicals Share Price Target 2026 (₹) | Maximum Tata Chemicals Share Price Target 2026 (₹) |
|---|---|---|
| 2026 | ₹1925.75 | ₹2105.50 |
According to technical data analysis,
- The initial price target for Tata Chemicals Ltd in 2026 is projected to be ₹1925.97.
- With favorable market conditions, the mid-year price target for Tata Chemicals Ltd could potentially reach ₹2005.6.
- By the end of 2026, the projected price target for Tata Chemicals Ltd is expected to potentially reach ₹2105.87, driven by bullish market trends.
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| Year | Minimum Tata Chemicals Share Price Target 2027 (₹) | Maximum Tata Chemicals Share Price Target 2027 (₹) |
|---|---|---|
| 2027 | ₹2100.75 | ₹2420.35 |
Analyzing Fibonacci projections, the anticipated price target forecast for Tata Chemicals Ltd (TATACHEM) in the first half of 2027 is estimated to range between ₹2100.1 and ₹2420.91. By the second half of 2027, it is anticipated that the share price of TATACHEM could attain a maximum value of ₹2420.89.
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| Year | Minimum Tata Chemicals Share Price Target 2028 (₹) | Maximum Tata Chemicals Share Price Target 2028 (₹) |
|---|---|---|
| 2028 | ₹2420.7 | ₹2680.3 |
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| Year | Minimum Tata Chemicals Share Price Target 2029 (₹) | Maximum Tata Chemicals Share Price Target 2029 (₹) |
|---|---|---|
| 2029 | ₹2675.5 | ₹2850.2 |
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| Year | Minimum Tata Chemicals Share Price Target 2030 (₹) | Maximum Tata Chemicals Share Price Target 2030 (₹) |
|---|---|---|
| 2030 | ₹2850 | ₹3095 |
According to the Experts,
- The initial price target for Tata Chemicals Ltd in 2030 is projected to be ₹2850.16.
- With favorable market conditions, the mid-year price target for Tata Chemicals Ltd could reach ₹3095.16.
- By the end of 2030, the price target for Tata Chemicals Ltd is expected to potentially reach ₹3095.06, considering bullish market trends.
Analyzing Tata Chemicals’ stock for potential investment involves assessing key financial indicators. Instead of delving into exhaustive financial statements, investors can leverage essential ratios to gain insights into the company’s performance.
PE Ratio: The Price-to-Earnings (P/E) ratio for Tata Chemicals stands at 37.56, indicating a relatively high valuation, potentially suggesting overvaluation.
Share Price: Currently, Tata Chemicals’ share price is Rs 1,315.25. Evaluating this against valuation calculators can reveal whether the stock is undervalued or overvalued.
Return on Assets (ROA): With an ROA of 5.88%, Tata Chemicals exhibits a lower efficiency in converting invested assets into net income, signaling potential challenges for future performance.
Current Ratio: Tata Chemicals boasts a current ratio of 2.20, showcasing its ability to meet short-term liabilities with short-term assets, contributing to stability amid economic fluctuations.
Return on Equity (ROE): The ROE of 6.56% for Tata Chemicals indicates its capacity to generate profit from shareholder investments, though a higher ratio is generally preferred.
Debt to Equity Ratio: With a D/E ratio of 0, Tata Chemicals maintains a low level of debt in its capital structure, a positive indicator of financial health.
Inventory Turnover Ratio: The Inventory Turnover ratio of 4.80 suggests potential inefficiency in Tata Chemicals’ inventory and working capital management.
Sales Growth: Tata Chemicals reports a commendable revenue growth of 32.49%, reflecting fair performance and growth.
Operating Margin: Tata Chemicals’ operating margin for the current financial year is 8.44%, providing insights into the company’s operational efficiency.
Dividend Yield: With a current year dividend of Rs 17.50 and a yield of 1.33%, Tata Chemicals’ dividend yield indicates the return on investment in relation to the stock’s price.
Strengths
- 15.20% growth in profits over the past three years reflects strong performance from the company.
- 19.07% growth in revenues over the same period represent a solid financial performance.
- The company has a solid financial position, with low debt levels and a virtually debt-free status.
- With an interest coverage ratio of 49.65, the company is in a very strong position to meet its interest obligations.
- A Cash Conversion Cycle of -74.31 days demonstrates a rather impressive management of cash flows for the company on a year on year basis.
- The company has a current ratio of 2.20, indicating Ltd. is in a strong liquidity position.
Weakness
- Despite an impressive display of financial health, the company has struggled to maintain a positive Return on Equity (ROE), recording a subpar 5.29% over the past three years.
FAQs
Q. What is the P/E and P/B ratios of Tata Chemicals Ltd.?
The P/E and P/B ratio of Tata Chemicals Ltd. is 12.96 and 1.52.
According to the analysis, Tata Chemicals share price reach INR 2500 at the end of 2028.
