Tata Consumer Products share price jumped in early trade on Wednesday after the global brokerage firm Goldman Sachs upgraded its rating on the stock and raised its price target.
Shares of Tata Consumer Products jumped 8.15 percent to an intraday high of Rs 1,073.15 per share on the NSE. Later, it trimmed some of its gains to trade at Rs 1,063.40 apiece, up 7.17 percent.
Goldman Sachs tagged a 'BUY' rating on the counter from an earlier 'Neutral' rating with a revised target of Rs 1,200 per share from an earlier recommendation of Rs 1,040 apiece.
Goldman Sachs stated that Tata Consumer Products is set for robust growth in its Earnings Per Share (EPS) over financial years 2025-2027.
The brokerage also anticipates a recovery in the company’s tea margins, supported by price hikes. Goldman Sachs noted that Tata Consumer is actively driving innovation and expanding distribution in its growth businesses.
The company reported a 6 per cent decline in group profit to Rs 282 crore, impacted by inflation in the tea segment and high interest costs. Sequentially, group net profit fell 23 per cent from Rs 367.2 crore recorded in the previous quarter.
The owner of Tetley tea and Ching’s Secret noodles brands posted a 17 per cent year-on-year increase in revenue to Rs 4,444 crore for the quarter ended December 31, driven by growth in its India beverages and foods business, which accounts for nearly 70 per cent of its topline.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol 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.
