Is Tata Chemicals overvalued or undervalued?

As of 31 October 2025, Tata Chemicals has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 51.11, an EV to EBITDA of 13.98, and a Price to Book Value of 1.05, which suggest that the stock may be trading at a discount relative to its earnings and asset value.
In comparison to its peers, Tata Chemicals' PE Ratio is significantly lower than that of Adani Enterprises at 84.12 and SRF at 53.8, both of which are classified as expensive. Additionally, Tata Chemicals' EV to EBITDA ratio of 13.98 is more favorable compared to SRF's 34.29, indicating a better valuation relative to earnings. Despite a recent downturn in stock performance, with a year-to-date return of -15.12% compared to the Sensex's 7.42%, the overall valuation suggests that Tata Chemicals presents a compelling investment opportunity.