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Tata Consumer Products Limited makes everyday items.
Goldman Sachs has upgraded the shares of Tata Consumer Products to ‘Bay’. The target has been increased from ₹ 1,040 to ₹ 1,200. After this, its stock has a rise of 8% today. It is trading beyond Rs 1,060.
Goldman Sachs cited strong earning growth potential for Tata Consumer Products during FY 25-27 for upgrading the rating.
Goldman has given three reasons behind driving strong growth:
- Improvement in tea margin and increase in prices are the cause of strong growth.
- Innovation and distribution expansion support bullish outlook.
- The company is expected to reduce the net interest cost by paying the company’s acquisition-related loan.
Tata Consumer’s profit in the third quarter was Rs 281.92 crore
Tata Consumer Products Limited’s net profit of the third quarter ended December 2024 declined by 6.5% to Rs 281.92 crore. The company earned a net profit of Rs 301.51 crore in the October-December quarter a year ago.
During this quarter, the company’s operational income increased by 16.81% to Rs 4,443.56 crore. It was Rs 3,803.92 crore in the same period of a year ago. In the December quarter, the total expenditure of Tata Consumer increased by 22% to Rs 4,087.07 crore.
The total branded business of Tata Consumer increased by 18.3% to Rs 4,026.15 crore in the December quarter. It was Rs 3,403.31 crore in the same quarter of the last financial year. The branded business of Tata Kanjunar includes tea, coffee, water and various other value added businesses.
Its revenue increased by 19.31% to Rs 2,833.68 crore from the branded business in India. The international branded business rose by 15.95% to Rs 1,192.47 crore. Whereas, its revenue from non-branded business was Rs 446.12 crore, which is an increase of 8.66%.
