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Tata Chemicals Ltd Stock Analysis

Mid Cap
Evaluated by 4379 users | BSE: 500770 | NSE: TATACHEM |
Chemicals
Tata Chemicals (TCL), established in 1939, is the second largest producer of soda ash in the world with manufacturing facilities spread across four continents.Tata Chemicals is the world’s second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and...
1. Right Stock
Somewhat Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tata Chemicals Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 8.5%9.9%7.39%0.99%8.16%7.23%6.72%9.29%5.85%13.42%
Value Creation Index -0.39-0.29-0.47-0.93-0.42-0.48-0.52-0.34-0.58-0.04
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 11,06113,81514,71115,88517,20417,17714,96314,35712,81110,357
Y-o-Y Gr. Rt.-24.9%6.5%8%8.3%-0.2%-12.9%-4.1%-10.8%-19.2%
Adjusted EPS (Rs.) 26.4537.6329.55-10.134.1232.6335.9759.0237.24102.73
Y-o-Y Gr. Rt.-42.3%-21.5%-134.2%NA-4.4%10.2%64.1%-36.9%175.9%
Book Value per Share (Rs.) 213.99248.71251.75214.93215.07269.05310.42435.77484.42506.26
Adjusted Net Profit 674959753-2578698319161,5039492,617
Net Op. Cash Flow (Rs. Cr.) 9571,2152212,3381,2742,3323,5311,8701,5811,780
Debt to Cash Flow from Ops 5.965.8137.943.596.583.923.273.884.22
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tata Chemicals Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -0.7%-9.7%-11.5%-19.2%
Adjusted EPS 16.3%24.7%41.9%175.9%
Book Value per Share 1018.717.74.5
Share Price 5.3% 7.3% -11.2% -31.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.2516.2711.81-4.315.6413.412.4215.828.0920.74
Operating Profit Margin (%) 16.9317.215.9712.0813.7213.615.6518.5416.419.04
Net Profit Margin (%) 7.838.46.55-0.216.286.127.6312.018.4327.15
Debt to Equity 1.051.111.311.531.531.330.890.550.50.58
Working Capital Days 101116141142172181158145147179
Cash Conversion Cycle 28426473767564352050
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 35.47%
Institutions 38.25%
Non-Institutions 26.29%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tata Chemicals Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tata Chemicals Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tata Chemicals Ltd's performance infers:

Tata Chemicals Ltd earnings have grown by 24.7%, whereas share price has appreciated 7.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Tata Chemicals Ltd share prices over the last 10 years. Here is what we found out:

Tata Chemicals Ltd share price has appreciated 3% annually over the past ten years.

Tata Chemicals (TCL), established in 1939, is the second largest producer of soda ash in the world with manufacturing facilities spread across four continents.

Tata Chemicals is the world’s second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. The company’s industry essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products.

Tata Chemicals (TCL), established in 1939, is the second largest producer of soda ash in the world with manufacturing facilities spread across four continents.

Tata Chemicals is the world’s second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. The company’s industry essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products.

TCL is market leader in iodised salt segment and leading manufacturer of urea and phosphatic fertilizers. Its urea plant in Babrala in Uttar Pradesh is most energy efficient fertilizer plant in country.

The Tata Chemicals Innovation Centre is home to world-class R&D capabilities in the emerging areas of nanotechnology and biotechnology. The company’s Centre for Agri-Solutions and Technology provides advice on farming solutions and crop nutrition practices.

The company has also entered into a JV with Singapore’s Temasek Life Sciences Laboratory (Joil) to develop jatropha seedlings to enable bio fuels capability. In line with its mission, ‘serving society through science’, the company is applying its expertise in sciences, to develop high-tech and sustainable products.

Products

Chemicals

It manufactures soda ash which is used to manufacture glass, soaps, detergent. It is also used in metal refining, textile processing, etc.Soda ash also is used in the manufacture of cement Caustic soda is used for manufacturing rayon, pulp, paper, gypsum-used in pharmaceuticals, insecticides and bromine.

Fertilisers                                                                                    

Its  manufacturing fertiliser plant is located in Babrala ,which has installed capacity of 8,64,000 tonnes per year. It contributes 12 % of total urea produced by Indian private sector.

Consumer products 

 It manufactures salt, sodium bicarbonate and cooking soda.TCL manufactures 3,50,000 vacuum evaporated iodised salt.It produces four kind of salt -- iodised salt, crystalline salt , vacuum salt and pure salt .It produces 50,000 tonnes of sodium bicarbonate per annum.

It also produces hydrobromic acid, liquid bromine, hydrochloric acid and liquid chlorine.

Awards/Achievements:

TCL won 11 awards at the 48th Association of Business Communication of India (ABCI) annual awards.

Its fertilizer business unit won Golden Peacock environment management award from World Environment Foundation.

Its chemicals unit at Babrala won Safety Gold Award from Greentech Foundation, Delhi.

It was amongst the top 10 most trusted brands in survey conducted by The Economic Times.

Tata Salt was selected as “Mera Brand” in Consumer World Awards.

Milestones

1927
 Kapil Ram Vakil sets up Okhamandal Salt Works.
 On May 4, VT Krishnamachari, then dewan (administrator) of Baroda, lays foundation stone.
1937
 Tatas approached to take over Okhamandal Salt Works.
1939
 Tata Chemicals Limited incorporated on January 23.

2001
 Production severely affected due to earthquake on January 26, 2001 and the fire in the power plant on March 2, 2001. Cement sales taken over from ACC Limited.
2002
 Mithapur is awarded ISO-14001 certification.
 The chemicals division at Mithapur is awarded the ISO-9001-2000 Migration certificate.
2003
 Tata Salt ranked No. 1 Food brand in Brand Equity Survey of India's most trusted brands.
 Babrala fertiliser plant registered with British Safety Council.
 New initiatives taken up to consolidate and drive growth in the core business.
 Chemical plant at Mithapur bags 'Certificate of Honour' and saltworks awarded 'Certificate of Merit' by Gujarat State Safety Council.
 Mithapur becomes the first industrial township to be awarded the ISO 14001 certificate.
 The fertiliser plant gets ISO-14001 and OHSAS-18001 certification.
2004
 ISO 14001 certification for the Babrala Township for implementation of Environment Management System. Certification audit conducted by KPMG, India.
 Tata Chemicals set up the Innovation Centre to develop world-class R&D capability in the emerging areas of nanotechnology and biotechnology.
2005
 First step towards internationalisation. Tata Chemicals acquires an equal partnership in Indo Maroc Phosphore SA (IMACID) along with Chambal Fertilisers and global phosphate major, OCP of Morocco.
2006
 Tata Chemicals completes acquisition of UK-based Brunner Mond Group, one of the world's leading manufacturers soda ash and associated alkaline products.
2008
 Tata Chemicals acquires US-based General Chemical Industrial Products (GCIP). Becomes world’s second largest soda ash manufacturer.
2009
 Tata Chemicals urea division achieves RC 14001 - 2005 Certification
 Tata Chemicals certified under SA 8000:2001 standard for the Mithapur, Babrala and Haldia sites by RINA India.
 Tata Chemicals launches ‘i-Shakti Cooking Soda’– refined sodium bicarbonate.
 Tata Chemicals launches 'Tata Swach' water purifier. It has been designed to tackle one of India's biggest social and technological challenges – the need for safe drinking water.
2010
 Rallis India acquires majority stake in Metahelix Life Sciences.
 Tata Chemicals acquires 100-per-cent stake in leading vacuum salt producer British Salt, UK.
 Tata Chemicals launches i-Shakti dals (pulses).
2011
 Tata Chemicals rebrands global subsidiaries - Tata Chemicals North America (General Chemical Industrial Products), Tata Chemicals Magadi (Magadi Soda Company), Tata Chemicals Europe (Brunner Mond and British Salt)
 Acquires stake in EPM Mining Ventures, Canada
 Signing of the pre-construction services agreement with Technip for the Gabon Fertiliser Project
 Africa's first premium ash plant opens at Tata Chemicals Magadi
2012
 Tata Salt launches its flavoured variants - 'Flavoritz'
 India's first iodine plus iron fortified salt launched by Tata Chemicals
 Tata Chemicals Europe and E.ON Energy from Waste UK Ltd to set up a plant to generate energy from waste at Lostock in Northwich
2013
 TCL's efforts help save more than 350 whale sharks
 Tata Chemicals signs MoU with the Institute of Chemical Technology to set up endowment chair.
 Tata Swach launches new variant Cristella Plus.
 Tata Chemicals launches innovative organic plant growth regulators
- FarmGro and FarmGro G

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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