Sharekhan's research report on Tata Consumer Products
Tata Consumer Products Limited’s (TCPL’s) board proposed reorganisation of its India and overseas business to simplify, align, and synergise the business. TCPL proposed to consolidate Tata Coffee Limited’s (TCL) business into TCPL and its wholly owned subsidiary at a share swap ratio of 3 TCL shares for 10 TCPL shares; and purchase 10.15% stake in TCP UK through preferential allotment. Proposed reorganisation is expected to result in revenue and operational efficiences, which will lead to 5-10% PAT accretion in the next 12-18 months.
The stock is currently trading at 54.4x/45.3x its FY2023E/FY2024E EPS. We maintain Buy with an unchanged PT of Rs. 960.
At 13:05 hrs TATA Consumer Products was quoting at Rs 775.15, up Rs 9.20, or 1.20 percent.
It has touched an intraday high of Rs 780.00 and an intraday low of Rs 766.00.
It was trading with volumes of 116,091 shares, compared to its thirty day average of 158,622 shares, a decrease of -26.81 percent.
In the previous trading session, the share closed up 3.05 percent or Rs 22.70 at Rs 765.95.
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 12.81 percent below its 52-week high and 26.19 percent above its 52-week low.
Market capitalisation stands at Rs 71,434.08 crore.
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