Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy Tata Consumer Products: target of Rs 925: ICICI Securities

ICICI Securities is bullish on Tata Consumer Products recommended buy rating on the stock with a target price of Rs 925 in its research report dated March 30, 2022.

March 30, 2022 / 12:45 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Securities research report on Tata Consumer Products


TCPL is in the process to create a simplified corporate structure which may allow it to unlock/sell some of its low-growth / low-profit subsidiaries. That is the key insight we have gained from TCPL’s restructuring plan. We also believe recurring earnings accretion of 5-10% is a high probability post the restructuring as (1) minority interest of Rs957mn (9.3% of pre-minority interest) will be almost nil, (2) there will be a reduction in admin and legal expenses, (3) likely some savings from release of excess management bandwidth and (4) there will be some tax savings and better utilisation of tax credits. Even after considering dilution (31.3mn additional shares i.e. 3.4% dilution), EPS may inch up by 5-10%. We also expect some revenue synergies especially in extraction business.



Outlook


We expect TCPL to announce further restructuring plans in FY23 considering it has 45 global subsidiaries and some associates/ joint ventures. We remain constructive. Maintain BUY with an unchanged SoTP-based target price of Rs925.


More Info

Close

At 12:43 hrs TATA Consumer Products was quoting at Rs 765.10, up Rs 21.85, or 2.94 percent.


It has touched an intraday high of Rs 782.50 and an intraday low of Rs 749.85.


It was trading with volumes of 331,776 shares, compared to its thirty day average of 148,504 shares, an increase of 123.41 percent.


In the previous trading session, the share closed up 0.32 percent or Rs 2.35 at Rs 743.25.


The share touched its 52-week high Rs 889.00 and 52-week low Rs 614.25 on 07 September, 2021 and 07 May, 2021, respectively.


Currently, it is trading 13.94 percent below its 52-week high and 24.56 percent above its 52-week low.


Market capitalisation stands at Rs 70,507.92 crore.


For all recommendations report, click here


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



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: Mar 30, 2022 12:45 pm
Sections
ISO 27001 - BSI Assurance Mark