Sharekhan is bullish on Tata Consumer Products has recommended buy rating on the stock with a target price of Rs 484 in its research report dated July 23, 2020.
Sharekhan's research report on Tata Consumer Products
TCPL will become strong play with integration of Tata Chemicals’ consumer business; share of consistently-performing India business in revenue to rise to 61% from 48%, margins too can rise 60-80 bps in the near term. Appointment of consumer expert Mr. Sunil D’Souza as MD & CEO improves earnings visibility; consolidated revenue and earnings (including TCL’s consumer business) to clock CAGR of 10% and 20% over FY2020-23E. Balance sheet strengthening despite commodity-linked business; FCF rose to Rs. 711 crore in FY2020 from negative Rs. 103 crore in FY2019; debt/equity ratio at 0.1x.
Initiating coverage on Tata Consumer Products Limited (TCPL) earlier named Tata Global Beverages with a Buy rating and PT of Rs. 484.
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