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Buy Tata Consumer Products: target of Rs 740: Sharekhan

Sharekhan is bullish on Tata Consumer Products has recommended buy rating on the stock with a target price of Rs 740 in its research report dated May 07, 2021.

June 10, 2021 / 11:13 AM IST
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Sharekhan's research report on Tata Consumer Products

In Q4FY21, Tata Consumer Products (TCPL)’s margins missed the mark and stood at 9.9% (vs. our street expectation of 11-12%); Revenue growth stood strong at 26% to Rs. 3,027 crore while Adjusted PAT stood at Rs. 181 crore (vs. our and street expectation of Rs. 190-195 crore). India beverages business grew by 60% (volume growth of 23%); India foods biz revenues rose by 22% (volumes grew 21%), while Tata Coffee saw a 31% largely volume-led growth. Tata Starbucks became EBIDTA Positive in FY2021; business recovered to 98% in February. Demand for staples/ daily consumption item to remain stable in the coming months. However, local lockdowns and restricted business hours might lead to near-term supply disruptions; domestic tea prices are likely to moderate in new crop season. We have reduced our FY22 earnings estimates by 4%, while we broadly maintain them for FY2023.


We maintain our Buy recommendation with target price of Rs. 740.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 27, 2021 12:46 pm

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