Buy Tata Consumer Products; target of Rs 950: ICICI Direct

ICICI Direct's research report on Tata Consumer Products

Tata Consumer Products (TCPL) is one of the major FMCG companies present in tea, coffee & other beverages in India, UK, US, Canada and some other geographies. In India, it also has salt, pulses, spices and other food products. Its subsidiary NourishCo is present in packaged water & other beverages. The company is in JV with Starbucks, which has 300 stores in India. The company has 2000+ distribution directly reaching to 1.4 million outlets in India. This will be increased to 1.5 million outlets by March 2023 • TCPL also increased its rural/ semi urban distributors 4x to 8000+ after the consolidation of the consumer business.

Outlook

We maintain our BUY rating on the stock. We value the stock at Rs 950 on ascribing 55x FY24 earnings multiple.