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Yes Securities has add call on Tata Consumer Products with a target price of Rs 847. The current market price of Tata Consumer Products is Rs 776.4. Time period given by analyst is one year when Tata Consumer Products Ltd. price can reach defined target.

Tata Consumer Products Ltd., incorporated in the year 1962, is a Large Cap company (having a market cap of Rs 70632.33 Crore) operating in FMCG sector.

Tata Consumer Products Ltd. key Products/Revenue Segments include Tea, Other Operating Revenue, Royalty Income, Export Incentives for the year ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 3222.80 Crore, down -.33 % from last quarter Total Income of Rs 3233.42 Crore and up 4.63 % from last year same quarter Total Income of Rs 3080.18 Crore. Company reported net profit after tax of Rs 289.24 Crore in latest quarter.

Investment Rationale
India beverages saw a revenue decline of 4% for the quarter and marginal 2% volume growth mainly due to the very high base, while margins improved due to lower tea prices. Foods business grew strongly at 19% despite a high base led by Sampann and premium salts with margins impacted by inflation and higher investments in new businesses. Tata Coffee grew 7% led by plantations and Vietnam business. Nourishco growth of 51% on a high base Starbucks growth of 32% were other key positives. The brokerage reiterates ADD rating with a revised SOTP-based PT of Rs 847, implying 49x FY24E earnings.

Promoter/FII Holdings
Promoters held 34.72 per cent stake in the company as of 31-Mar-2022, while FIIs owned 25.36 per cent, DIIs 13.7 per cent.

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