Sharekhan's research report on Tata Consumer Products
Tata Consumer Products Ltd’ (TCPL’s) operating performance was good with revenues and operating profit growing by 16% and 22% y-o-y respectively; higher interest cost kept adjusted PAT flat at Rs. 368 crore. Scale-up in performance of recent acquisitions, distribution expansion with focus on new-age channels and strong 25-30% growth in growth businesses will drive double-digit revenue growth. OPM will be above 15% in the coming years. It will raise ~Rs. 3,000 crore through a rights issue, which will be utilised for repayment or full buyback of commercial papers issued by the company for funding the recent acquisitions.
Outlook
Stock trades at 71x/57x its FY2025E/FY2026E EPS, respectively. We maintain Buy with an unchanged PT of Rs. 1,315.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
