Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strong brand performance and strategic initiatives.
Basis of our Recommendation
Tata Consumer Products is positioned for robust growth, driven by strong performance in its branded business, strategic distribution efforts, and a focus on premiumization. The company is optimistic about achieving double-digit growth through innovations and market expansion, despite facing some cost pressures. Overall, the outlook remains favorable with significant revenue growth potential in the Indian market.
Why We Like This Stock
- Strong growth momentum in the India branded business
- Successful margin expansion through selective price hikes
- Positive revenue growth from store expansion in Tata Starbucks
Things To Watch Out For
- Moderate cost pressures impacting margins
- Global uncertainties affecting overall market conditions
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 15,206 | 17,618 | 20,290 | 22,565 | 25,000 |
| Profit Before Tax (Cr.) | 1,981 | 1,782 | 2,193 | 2,551 | 3,014 |
| PBT Margin | 13.0% | 10.1% | 10.8% | 11.3% | 12.1% |
| Net Profit (Cr.) | 1,346 | 1,309 | 1,572 | 1,906 | 2,251 |
| EPS | 12.9 | 13.1 | 16.0 | 19.2 | 22.7 |
Company Overview
Show Company Profile
Tata Consumer Products Limited, together with its subsidiaries, manufactures, distributes, and trades in food products in India, the United States, the United Kingdom, and internationally. It operates through Branded Business and Non Branded Business segments. The company provides tea, coffee, water, salt, pulses, spices, snacks, ready-to-eat packaged and processed food products, ready to cook, ready to drink beverages, breakfast cereals, sauces, instant masala noodles, meal solutions, staples, mini-meals, breakfast, chilli ginger garlic paste, cooking aids and condiments, dry fruits, floor and millets, honey, chutneys, and cold-pressed oils. It also offers health supplements; glucose and jelly drinks; juices; food; and out-of-home consumptions products. The company provides its products primarily under the Tata Tea, Tata Tea Premium, Tetley, 1868 by Tata Tea, Organic India, Tata Coffee Grand, Tata Coffee Gold, Tata Coffee Quick Filter, Sonnets by Tata Coffee, Tata Salt, Tata Sampann, Smith & Jones, Tata Soulfull, Himalayan honey and preserves, Ching's Secret, Tata Simply Better, Himalayan water, Tata Copper+, Tata Gluco+, Tata Coffee Grand Cold Coffee, Zip Zap, Tetley Ready-To-Drink Green Tea, Tata Starbucks, Tata Consumer Specialist Solutions, Tata MyBistro, Good Earth, Teapigs, Eight O'Clock, Vitax, Himalayan, Laager, Tea4Kidz, Tea time, Society Coffee, Phendula, Teeco, Southalls, Tata Tea Gold, Kanan Devan, Chakra Gold, Tata Tea Agni, Joekels, Tata Coffee Cold Coffee, Tata Fruski, Tata GoFit, Himalayan Honey & Preserves, Himalayan Saffron, and Tata MyBistro Vending brands. The company was formerly known as Tata Global Beverages Limited and changed its name to Tata Consumer Products Limited in February 2020. Tata Consumer Products Limited was incorporated in 1962 and is based in Mumbai, India.