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 undervalued, with a PE ratio of 51.11, an EV to EBITDA of 13.98, and a Price to Book Value of 1.05. In comparison to peers, Tata Chemicals' valuation metrics are more favorable than Adani Enterprises, which has a PE of 84.12 and an EV to EBITDA of 26.63, and SRF, which stands at a PE of 53.8 and an EV to EBITDA of 34.29.
Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -15.12% compared to the Sensex's 7.42%, Tata Chemicals' valuation indicates significant upside potential. The company's PEG ratio is notably at 0.00, suggesting that it may be undervalued relative to its growth prospects. Overall, Tata Chemicals presents an attractive investment opportunity in the commodity chemicals sector.