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, with a PE ratio of 51.11, an EV to EBITDA ratio of 13.98, and a Price to Book Value of 1.05. These figures suggest that despite a high PE ratio, the overall valuation metrics indicate a favorable investment opportunity relative to its peers.
In comparison to its industry peers, Tata Chemicals stands out as very attractive, especially when juxtaposed with Adani Enterprises, which has a PE ratio of 84.12, and SRF, with a PE ratio of 53.8. The PEG ratio for Tata Chemicals is notably at 0.00, indicating potential for growth without the corresponding valuation pressure seen in its peers. While the company's recent stock performance has lagged behind the Sensex, particularly over the past year with a decline of 22.46% compared to the Sensex's gain of 5.73%, the long-term outlook remains promising with a significant 5-year return of 176.42%.