Tata Chemicals Share Price Target 2023, 2024, 2025, and 2030: In this article, you are going to learn about Tata Chemicals share price target 2023, 2024, 2025, and 2030, along with the fundamentals, business model, and opportunities that Tata chemicals have in the EV theme.
For every investor, it is very important to know about the company in which they are investing, in order to get the confidence to hold the stock for the long term. To make it clear for you, we are going to discuss Tata Chemicals share price target along with the fundamentals of the company.
Also read: Subex share price target 2022, 2025, and 2030.
Company Profile
Tata Chemicals Limited is a science-led chemistry solutions company and is a part of the Tata group, with a US $106 billion turnover. Tata Chemicals develops science-led innovative products and solutions based on better tomorrow. With their world-class manufacturing facilities, the company provides distinct technologies to provide nutrition solutions for human & animal health and agriculture solutions to improve farm yield and income.
Tata chemicals are into two types of chemicals that are basic chemistry & specialty chemicals.
Share Holding Pattern
Tata Chemicals revenue majorly comes from Basic chemistry products. Tata Chemicals is the leading essential chemical input manufacturer, Tata chemicals is a very important part of the value chain for global companies. The ability to deliver world-class quality, supported by service reliability and cost competitiveness makes Tata Chemicals a trusted player with a strong corporate brand and high image score.
Leadership in chemicals such as
- Soda Ash.
- Bicarb salt.
- Conventional Silica.
- MArine chemicals.
- FOS / GOS.
- Crop care/seeda.
Business model of Tata Chemicals
Tata chemicals are into two verticals, Basic chemistry products, and specialty products.
Basic Chemistry products
Soda ash, Bicarb salt, Marine chemicals, Crushed refined soda, and cement, end-users of these products are B2B industries. Tata Chemicals is the world’s leading producer of Soda Ash and India’s leading edible and vacuum salt manufacturer.
specialty products are divided into
- Agri sciences.
- Nutritional sciences.
- Material sciences.
- Energy sciences.
Agri sciences
Products such as Seeds, Crop care, Active ingredients. End-users are farmers, the products of Tata Chemicals reach over 80% of India’s districts and 13.5 million farmers.
Nutritional sciences
Products such as Ingredients and formulation solutions for human and animal health. Tata Chemicals holds a lot of patents in this segment, which gives it an advantage over its peers.
Energy sciences
This is the main business that has huge potential in the future due to the EV theme. Tata Chemicals wants to become a leader in energy chemistry in India with a target of 25% market share in Lithium-ion-battery. The company also wants to do cell manufacturing, Battery pack manufacturing, and recycling, they already started the recycling of lithium-ion batteries.
The company has huge opportunities in lithium-ion battery technology and manufacturing as the batteries are used in electric vehicles. Tata chemicals trying to build technologies in lithium-ion-battery cell manufacturing by leveraging MOY signed for cell manufacturing and next-generation chemistries.
The company is partnering with leading battery manufacturers and R&D labs.
Tata Chemicals is partnering with Tata technologies to establish its own battery engineering center in Pune and partnering with Tata Power for energy storage solutions and planning to build 1 GWH cell line by 2022 with technology from a global leader.
Tata Chemicals Share Price Target 2023
The Indian chemical industry has a structural and locational advantage to rapidly grow from its current size of US $178 billion to US$ 300 billion over the next 5 to 7 years. In addition to its demographic dividends, India has one of the lowest per capita consumption of chemicals, offering adequate headroom for the sector to grow. Its vantage location provides opportunities in servicing export demand.
Basic Chemistry Products such as Alkali chemicals are the primary growth drivers for inorganic chemicals having a stable outlook. Specialty chemicals account for a major share of chemical exports, dominated by agrochemicals, dyes, and pigments.
Consumer trend towards good health to drive demand for home and personal care items such as nutraceuticals, food ingredients, and packaged food & beverages. The Government of India aims to transform India into a manufacturing hub for crop-protection chemicals. The Indian market is estimated at ₹43,000 crores, of which exports are 23,000 crores. The sector is expected to grow more than 9% over the next 5 years with exports growing faster than the domestic market.
Considering all these opportunities for the company, we are giving Tata Chemicals share price target for 2023 is Rs 1470.
| Tata Chemicals share price target 2023 |
| Rs 1,470 |
Also read: Federal Bank share price target 2022, 2025, and 2030.
Tata Chemicals Share Price Target 2024
Tata Chemicals share price has grown at a CAGR of 12% over the past 3 years and given a 91% return in just 1 year. As Tata Chemicals has huge opportunities and is the leader in most of its segments we are giving Tata Chemicals share price target for 2024 is Rs. 1710.
| Tata Chemicals share price target 2024 |
| Rs 1,710 |
Also read: Adani Power share price target 2022, 2025, and 2030.
Tata Chemicals Share Price Target 2025
The Company continues to focus on driving its transformation agenda to grow businesses and products that serve customer needs along the vectors of sustainability and good health. These megatrends would drive demand growth in sectors such as food, feed, and pharma and also in sustainability-driven applications like solar glass, lithium carbonate, a new generation of tyres, and a shift from plastic to glass containers. In turn, these would continue to drive the Company’s current and future investments especially in its specialty products portfolio as ingredient supplier of choice to these sectors.
If you want to hold Tata Chemicals for the long term, we are giving Tata chemicals share price target for 2025 is Rs. 2,100.
| Tata Chemicals share price target 2025 |
| Rs 2,100 |
Also read: NTPC share price target 2022, 2025, and 2030.
Tata chemicals Share Price Target 2030
Tata Chemicals has a big advantage in EV theme. Tata Chemicals can become the leader in Lithium-ion-battery manufacturing, which has a huge potential in the future has every automobile company is moving towards EV, electric vehicles will use lithium-ion batteries, so Tata chemicals can become the main supplier of lithium-ion-batteries for automobile companies.
Tata Chemicals has an edge over its competitors like Exide Industries and Amara Raja Batteries, although there are in this industry for decades, the companies are literally too slow in making steps towards lithium-ion batteries, which is a big advantage for Tata chemicals. And the business is capital intensive, so Exide and Amara Raja may have some troubles whereas Tata Chemicals has more cash and it has support from the Tata empire.
Tata chemicals also have another advantage as they can partner with Tata technologies to develop battery technologies and also partner with Tata power to develop battery storage technology. Tata chemicals are already making big moves to capture the lithium-ion battery business, they also announced that they are setting up a manufacturing plant to manufacture lithium-ion batteries.
If you want to hold Tata Chemicals for the long term, we are giving Tata Chemicals share price target for 2030 is Rs 3,700.
| Tata Chemicals share price target 2030 |
| Rs 3,700 |
Also read: IRFC share price target 2022, 2025, and 2030.
Tata Chemicals Share Price Target 2023, 2024, 2025, and 2030
| Year | Tata Chemicals Share Price Target |
|---|---|
| Tata Chemicals share price target 2023 | Rs 1,470 |
| Tata Chemicals share price target 2024 | Rs 1,710 |
| Tata Chemicals share price target 2025 | Rs 2,100 |
| Tata Chemicals share price target 2030 | Rs 3,700 |
Key Triggers For Tata Chemicals Future Price Performance
Improvement in the soda pricing environment bodes well for the future growth outlook. Revival in export demand for North America unit to sustain group performance a higher share of specialty business to command better valuations for the overall group.
Increase in demand for solar cell and lithium carbonate to expand demand outlook for soda ash business.
Tata Chemicals Share Price Target: Risks and Opportunities
The key short to medium-term risk for the Company would be a slow post-pandemic price recovery in key export markets serviced by the USA and Kenya. The Company, across units, plans aggressive cost control and cash conservation measures through prudent capital expenditure spending and disciplined working capital management to counter this phase.
In addition, the focus on more resilient products and markets would moderate this impact. In India, with increasing demand, defending the Company’s market position is a prime focus area. The Company will pursue the execution of its capacity addition plans at Mithapur for key products i.e. salt, soda ash, and sodium bicarbonate under ‘Project Pragati’.
Tata Chemicals Share Price Target: Opportunities in UK
In the UK, there is a significant investment pipeline of projects across the Company’s business particularly in high-end product growth. Developing sales opportunities overseas for sodium bicarbonate and salt will continue to be a focus.
Major threats are likely to be a form of sluggish pick up in global growth by a slow exit from the pandemic, but UK’s progress on vaccinations means the domestic market should strengthen considerably
Risks in Agri Business
For AgriSciences, climate change can disrupt operations and/or reduce demand for products. This can lead to water shortages and decreased sales. Uncertainty in the timing and severity of monsoon can impact the overall business.
The geographic spread of business and a wide portfolio dampens the impact of climate-related issues. Rallis is focused on developing new products to deal with climate change issues. The Seeds R&D team of Rallis is working on hybrids that address stress conditions
Frequently Asked Questions
Is Tata chemicals debt-free?
No, Tata chemicals is not a debt-free company, Tata chemicals have a debt of below 10 crores, which is negligible considering the debt to equity of the company which is 0.
Is Tata Chemical overvalued?
Tata Chemicals have a PE of 40 which is high and comparatively overvalued.
Is Tata Chemicals a good company?
Yes, Tata chemicals is a very good company with strong management, financials, and fundamentals. Tata chemical is the leader in many of its business segments.
What are the future plans of Tata Chemicals?
Tata chemicals are trying to make big moves in the EV battery manufacturing segment. The company already announced that they are setting up a lithium-ion battery manufacturing plant. Tata Chemicals is partnering with Tata technologies for battery technology and with Tata power for battery storage technologies. Tata Chemicals have a huge advantage over its competitors.
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