Tata Consumer Products share price target: Brokerage firm DAM Capital has maintained its Buy rating on Tata Consumer Products Ltd and set a target price of Rs 1,460 per share, implying a potential upside of 34.2 per cent from the current market price (CMP) of Rs 1,088.
The brokerage’s positive view comes after Tata Consumer Products reported a decent performance in the first quarter of FY27, with growth across its branded business and its newer growth categories.
The company had posted a consolidated net profit of Rs 331.75 crore in the April-June quarter a year ago, the Tata group’s FMCG arm said in a regulatory filing.
Revenue from operations rose by 12 per cent to Rs 5,348.88 crore in the June quarter of FY27. It was at Rs 4,778.91 crore in the year-ago period.
Tata Consumer Products share price target
DAM Capital expects Tata Consumer Products to record revenue and EBITDA compound annual growth rates of 12.1 per cent and around 17.9 per cent during FY26-FY28E.
The brokerage expects EBITDA margins to expand by around 140 basis points to 15.2 per cent by FY28, moving towards the management’s long-term margin aspiration of 17-20 per cent.
“TCPL’s strong performance despite challenging macro-economic environment, reinforces the quality of the business and its ability to leverage Tata brand to expand in newly entrant categories,” DAM Capital said.
The brokerage believes the large addressable market across multiple categories could continue to support long-term growth, along with a gradual improvement in margins.
Based on its DCF valuation, DAM Capital has arrived at a target price of Rs 1,460 per share and maintained its Buy rating on Tata Consumer Products. At the current market price of Rs 1,088, the target implies a potential upside of 34.2 per cent.
Why is Tata Consumer attracting investors?
Tata Consumer Products is the Tata Group’s FMCG company. It sells tea, coffee, salt, spices, ready-to-drink beverages, packaged foods, and other daily-use products. The company’s key brands include Tata Tea, Tata Salt, Tata Sampann, Organic India, Capital Foods, and Starbucks (Starbucks India).
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
Shahnaz writes on a wide range of topics, including business, social issues, politics, environment, lifestyle and gender. She has previously wrote long-form content covering a wide range of topics, including politics, policies, and more. Additionally, she monitored wires services, social media, and local news outlets for breaking news and relevant stories. Also, she honed her skills in short-form writing, delivering accurate and concise content in a time-bound manner, from breaking news to engaging updates and latest developments on the respective topics. She holds a PG Diploma in Media Studies: Film and Television, with a master’s degree in Journalism and Mass Communication: Research from the University of Calcutta. With over 5 years of experience in journalism, including ground reporting, desk, coordination and copywriting, she excels in both arenas – desk and field. She has covered the West Bengal Assembly Elections 2021 and Lok Sabha Elections 2019 and reported on several news stories from West Bengal. She has extensively covered the TMC beat from 2018 to 2021. Apart from work, Shahnaz likes cooking, watching movies and reading books. She also loves travelling.
