Tatva Chintan Pharma Chem Ltd is trading near ₹1,069, having increased by about 2% in the latest session. The stock’s annual price range is between ₹621 and ₹1,233, showing a modest 4.65% gain over the past year but remains roughly 57% below its level from three years ago. It has a market capitalization of roughly ₹2,500 crore, placing it among mid-size specialty chemical companies.
Technically, Tatva Chintan has mild upward momentum, supported by recent gains in both the short and medium term. The price is riding above its 20-day average and consolidating just under the recent ₹1,080-1,100 resistance zone. Volatility has diminished over the past month as the stock stabilizes after its sharp rally from yearly lows. Average volumes are healthy, and trend-following indicators continue to point to cautious optimism.
Fundamentally, recent quarterly results showed a nearly 15% sequential revenue jump, with earnings per share at 2.8. However, the company’s price-to-earnings ratio is extremely high—well above 340—reflecting an expensive valuation relative to current earnings. Book value per share is ₹315.8, with the price-to-book ratio at 3.32. Operating expenses and employee costs expanded during the last quarter, and net profit slipped by over 30% sequentially, but rose more than 27% year-on-year. Profit margins face pressure, and return on equity has been declining, though debt levels remain low and a portion of profit has been returned as dividends.
Long-term investors may need to wait for further earnings improvement or a more attractive valuation, while short-term price action favors range-bound strategies between the current levels and the next resistance close to ₹1,100. The sector outlook remains positive, but valuation and profit growth trends are the primary factors to monitor going forward.
Technically, Tatva Chintan has mild upward momentum, supported by recent gains in both the short and medium term. The price is riding above its 20-day average and consolidating just under the recent ₹1,080-1,100 resistance zone. Volatility has diminished over the past month as the stock stabilizes after its sharp rally from yearly lows. Average volumes are healthy, and trend-following indicators continue to point to cautious optimism.
Fundamentally, recent quarterly results showed a nearly 15% sequential revenue jump, with earnings per share at 2.8. However, the company’s price-to-earnings ratio is extremely high—well above 340—reflecting an expensive valuation relative to current earnings. Book value per share is ₹315.8, with the price-to-book ratio at 3.32. Operating expenses and employee costs expanded during the last quarter, and net profit slipped by over 30% sequentially, but rose more than 27% year-on-year. Profit margins face pressure, and return on equity has been declining, though debt levels remain low and a portion of profit has been returned as dividends.
Long-term investors may need to wait for further earnings improvement or a more attractive valuation, while short-term price action favors range-bound strategies between the current levels and the next resistance close to ₹1,100. The sector outlook remains positive, but valuation and profit growth trends are the primary factors to monitor going forward.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.