Tata Consumer Products shares rise after analysts project up to 22% upside after Q1

Nomura

Brokerage firm Nomura has a “buy” rating on Tata Consumer Products with a price target of ₹1,300 per share. The stock ended the previous session at ₹1,062.6 apiece.It said the company’s first quarter

sales were in-line with estimates, while its earnings before interest taxes depreciation and amortisation (EBITDA) was tad below expectations.
Tata Consumer Products’ core business delivered strong 12.7% growth compared to the previous year, Nomura said, adding that the double-digit growth is set to continue.Its growth business, around 30% of India, increased by just 7% from the previous year, impacted by one-offs, Nomura said.
The stock trades at 52.4 times its earnings-per-share estimates for FY27, Nomura said.

Morgan Stanley

Morgan Stanley has an “overweight” rating on Tata Consumer Products with a target price of ₹1,255 per share.Revenue growth across the growth businesses to improve 30% in the second quarter onward, with volume and value growth converging for Nourishco, as per the management, Morgan Stanley said.

Its EBITDA margins will improve sequentially and improve to normative levels by the third quarter, closer to 16%, led by gross margin improving to 34%-37% in the tea segment compared to the present 24%, Morgan Stanley said.

Of the 29 analysts that have coverage on the stock, 20 have a “buy” rating, seven have a “hold” rating and two have a “sell” rating.

Shares of Tata Consumer Products were up 1.03% at ₹1,073.5 apiece at 10.25 am on Thursday, July 24. The stock has gained 16.7% this year, so far.

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