Tata Chemicals Limited (TATACHEM.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-46.4%

₹324.06

vs ₹604.75 price

Levered DCF

₹80.80

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.86

Distress zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	-7.84×	105.9×	98.21×	10.61×	19.81×	74.73×	7.06×	6.84×
P/B	0.7×	0.99×	1.25×	1.26×	1.36×	1.34×	0.44×	0.52×
P/S	1.02×	1.44×	1.8×	1.48×	1.97×	1.88×	0.55×	0.62×
EV / EBITDA	67.66×	14.01×	11.18×	7.82×	13.2×	16.17×	6.11×	5.83×
Gross margin	43.5%	60.1%	60.4%	59.1%	58.8%	72.4%	76.7%	76.8%
Operating margin	4.1%	27.1%	32.6%	34.9%	31.2%	57.3%	61.9%	61.3%
Net margin	-13.0%	1.6%	1.7%	13.8%	10.0%	2.5%	67.6%	11.2%
Current ratio	1.07×	1.09×	1.05×	1.66×	1.23×	1.49×	1.11×	2.05×
Debt / equity	0.38×	0.33×	0.25×	0.32×	0.38×	0.49×	0.6×	0.5×
Interest coverage	1.02×	8.53×	11.67×	14.43×	17.33×	20.41×	24.01×	21.02×
Dividend yield	1.9%	1.8%	1.6%	1.3%	1.0%	1.5%	6.7%	10.5%
Payout ratio	-14.8%	162.6%	166.8%	13.8%	20.3%	109.4%	5.5%	58.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-8.9%	1.1%	1.2%	11.7%	6.9%	1.8%	54.3%	9.4%
Return on invested capital	1.7%	8.1%	8.2%	17.0%	11.1%	15.8%	21.4%	21.1%
Return on assets	-4.9%	0.6%	0.7%	6.6%	3.7%	0.9%	25.2%	4.3%
Free cash flow yield	-1.1%	-1.1%	4.3%	5.6%	1.5%	4.2%	10.2%	7.8%
Earnings yield	-12.8%	1.1%	1.0%	9.4%	5.1%	1.3%	123.0%	18.1%
Enterprise value	₹224.6B	₹279.2B	₹328.3B	₹305.6B	₹310.9B	₹254B	₹121.4B	₹106.3B
Net debt / EBITDA	22.9×	3.28×	1.75×	1.48×	2.66×	3.97×	3.24×	2.33×
Cash conversion cycle (days)	85	50	61	67	58	63	92	106