Motilal Oswal 's research report on Tata Consumer Products
Tea prices in North India have increased to INR261/kg (weighted average) over Apr-Sep’20 (v/s INR162/kg during the same period last year). Note that all India weighted average tea prices have increased to INR224/kg (v/s INR149/kg last year). In this note, we have analyzed the impact of the increase in tea prices on Tata Consumer Products (TCP) in the near term as well as over the long term.
Outlook
We value TCP on an SOTP basis to arrive at target price of INR558. Maintain Buy.
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