Tata Consumer Share Price in Focus: Motilal Oswal Financial Services has maintained a BUY call on Tata Consumer products with a target price of Rs 1,370, citing confidence in the company’s steady fundamentals and evolving growth drivers. Here are the reasons why MOSL has maintained a BUY rating on this FMCG stock. Before we head towards the reasons, here’s a brief highlight about the company.
Tata Consumer is a major Fast Moving Consumer Goods (FMCG) company formed in 2020 by merging Tata Chemicals’ consumer business with Tata Global Beverages. It focuses on food and beverages, featuring well-known brands like Tata Tea, Tetley, Tata Salt, and Eight O’Clock Coffee, while expanding into staples, ready-to-eat products, and premium items.
These categories, with their established market presence and stable demand, provide earnings visibility and support overall margin resilience.
The company’s current healthy gross margin profile further strengthens its ability to sustain profitability while investing in future growth avenues.
Management has guided for mid-to-high single-digit revenue growth over the long term, followed by steady demand in core categories and improving product mix.
A key near-term positive identified by the brokerage is the expected softening in coffee input costs, which is likely to act as a margin tailwind, particularly benefiting the beverages segment.
Another notable highlight is the company’s disciplined portfolio strategy. Management’s clear focus on what not to pursue, avoiding over-diversification or low-return segments, enhances capital allocation efficiency and reduces execution risks. This strategic clarity is seen as a key differentiator in a competitive FMCG landscape.
On a financial basis, the brokerage estimates Tata Consumer to deliver a compound annual growth rate (CAGR) of 11 per cent in revenue, 15 per cent in EBITDA, and 23 per cent in profit after tax (PAT) over FY25-FY28. The higher earnings growth relative to revenue reflects operating leverage, cost efficiencies, and a richer product mix.
Tata Consumer Share Price
Ahead of market opening, at 9:08 AM, the shares of Tata Consumer Products were down by 0.56 per cent to trade at Rs 1018.05. The previous closing scrip was Rs 1023.75.
