Buy Tata Consumer Products; target of Rs 1380: Motilal Oswal

Motilal Oswal's research report on Tata Consumer Products

Tata Consumer Products (TATACONS) reported a healthy operatingperformance in 1QFY25. EBIT growth of 12% YoY was led by a strongperformance in international branded beverage segment (EBIT up 52% YoY)and non-branded business (EBIT up 92% YoY). EBIT for India brandedbusiness declined 1% YoY. We broadly maintain our FY25/FY26 EBITDA estimates. Reiterate BUY withan SoTP-based TP of INR1,380.

Outlook

We expect TATACONS to clock a revenue/EBITDA/PAT CAGR of 12%/18%/20% during FY24-26. We broadly maintain our FY25/FY26 EBITDA estimates. Reiterate BUY with an SoTP-based TP of INR1,380.