Buy Tata Consumer Products; target of Rs 1010: ICICI Securities

ICICI Securities is bullish on Tata Consumer Products recommended buy rating on the stock with a target price of Rs 1010 in its research report dated July 27, 2023.

Broker Research

July 29, 2023 / 21:29 IST

buy

26 Aug, 2025 12:21

Volume

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ICICI Securities research report on Tata Consumer Products

While TCPL’s Q1FY24 was largely in-line with our estimates, we note three positives as (1) the company’s initiative of split routes in towns with 1mn+ population has shown healthy results, (2) the growth businesses reported 58% YoY revenue growth. TCPL has stepped up the innovation in growth business and (3) improvement in profitability of India Foods and well as International Beverages indicates additional resources to drive growth. We believe the market share loss of 110bps and 30bps in India Tea and India Salt to be temporary as North India (key market) was impacted.

Outlook

With multiple initiatives in distribution, extension of regionalisation strategy in Jharkhand and Odisha and strong investments in innovation, we model market share recovery in FY24-25. Maintain BUY rating with a revised TP of INR 1,010.

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