Is Tata Chemicals overvalued or undervalued?

As of 27 October 2025, Tata Chemicals has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 51.28, an EV to EBITDA ratio of 14.01, and a Price to Book Value of 1.05. Compared to its peers, Tata Chemicals stands out; for instance, Adani Enterprises has a significantly higher PE ratio of 84.55, while SRF is at 62.57, indicating that Tata Chemicals is more reasonably priced within its industry.
Despite its attractive valuation, Tata Chemicals has underperformed the Sensex in recent periods, with a year-to-date return of -14.84% compared to the Sensex's 8.50%. This underperformance may present a buying opportunity, as the company's fundamentals suggest it is undervalued relative to its peers and overall market conditions.