Tata Chemicals Ltd. (TATACHEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

J.G.Chemicals

Gujarat Alkalies

TruAlt Bioenergy

Tanfac Inds.

India Glycols

GHCL

Fischer Medical

Grauer & Weil

Tata Chemicals

Chemplast Sanmar

Thirumalai Chem.

Why is Tata Chemicals Ltd. ?

Weak Long Term Fundamental Strength with a -14.18% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 5.13% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CF(Y) Lowest at Rs 1,269.00 Cr
PAT(Q) At Rs -17.00 cr has Fallen at -281.7% (vs previous 4Q average)
ROCE(HY) Lowest at 3.72%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -29.25% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tata Chemicals for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tata Chemicals

-29.25%

-1.02

28.60%

Sensex

-1.65%

-0.12

13.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.90%

EBIT Growth (5y)

-14.18%

EBIT to Interest (avg)

3.53

Debt to EBITDA (avg)

2.90

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

0.54

Tax Ratio

15.33%

Dividend Payout Ratio

-14.79%

Pledged Shares

Institutional Holding

33.22%

ROCE (avg)

6.36%

ROE (avg)

5.13%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.80

EV to EBIT

52.68

EV to EBITDA

13.98

EV to Capital Employed

0.85

EV to Sales

1.58

PEG Ratio

Dividend Yield

1.64%

ROCE (Latest)

2.15%

ROE (Latest)

0.18%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

NET SALES(Q)

Highest at Rs 4,255.00 cr

-15What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 1,269.00 Cr

PAT(Q)

At Rs -17.00 cr has Fallen at -281.7% (vs previous 4Q average

ROCE(HY)

Lowest at 3.72%

DEBT-EQUITY RATIO(HY)

Highest at 0.38 times

DPR(Y)

Lowest at -14.79%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 442.00 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.98 times

NON-OPERATING INCOME(Q)

is 50.91 % of Profit Before Tax (PBT

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Here's what is working for Tata Chemicals

Net Sales - Quarterly

Highest at Rs 4,255.00 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Tata Chemicals

Profit After Tax (PAT) - Quarterly

At Rs -17.00 cr has Fallen at -281.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 9.35 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs 1,269.00 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.38 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

is 50.91 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 442.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 6.98 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at -14.79%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)