Tata Consumer share price: On Wednesday, April 24, early trade on the BSE saw shares of Tata Consumer Products break over 5% after three straight days of advances. The day before, the business had released its earnings for the March quarter. The Tata Consumer share price began at ₹1,112.90, down 5.30 percent from its previous closing of ₹1,173.25. The price of Tata Consumer shares fell 4.88 percent to ₹1,116 a share at 10:15 a.m. At that moment, the equity benchmark Sensex was up 0.39 percent, trading at 74,024.86.
Tata Consumer announced a 22.5% decrease in its Q4FY24 net profit to ₹267.7 crore after market hours on Tuesday, April 23. This is in contrast to ₹345.6 crore in the same time previous year. In comparison with the same period last year, when revenue from operations was ₹3,619 crore, the quarter’s revenue increased by 8.5% to ₹3,927 crore.
Gaining ₹629.6 crore in the March quarter, the company’s EBITDA (profits before interest, taxes, depreciation, and amortization) increased by 23% over the same time in the previous year.
A 775 percent final dividend for FY24 was also declared by the board of Tata Consumer Products.
Should you buy or sell?
Over the past year, the share price of Tata Consumer has surpassed the stock benchmark by a considerable margin. As of the closing on April 23, the stock had increased by about 68% over the previous year, compared to the Sensex equity benchmark’s gain of about 24%.
Following the business’s Q4 results, a number of brokerage companies continued to hold a positive opinion on the stock.
Brokerage firm ICICI Securities kept a buy call on the shares, indicating a 16% increase in target price of ₹1,360.
Tata Consumer’s Q4FY24, according to the brokerage firm, was in line with its projections.
“We believe that growing enterprises’ (including gross margin accretive) outperformance will likely be the stock trigger in FY25–26. Following the purchases of Capital Foods and Organic India, growth businesses now account for around 30% of India’s branded revenues, according to ICICI Securities.
“The fundamentals must be carried out, including increasing throughput per store, expanding distribution, and creating synergies. By FY28 (421 presently), Starbucks hopes to have 1,000 locations. We think Tata Consumer has all it needs to meet these goals—resources, bandwidth, pipeline for innovation, etc.—according to ICICI Securities.
The brokerage Nuvama Wealth Management has decided to stick with its buy call on the stock, stating that Tata Consumer’s Q4 adjusted PAT and EBITDA above their projections while sales was in line with theirs. The target price of ₹1,400 was also maintained.
According to Nuvama, Tata Consumer is still driving development through innovation, expanding its distribution, and entering new markets. Following the earnings call, the brokerage company stated that it would review its projections and target price for the shares.
(Discliamer: This is not a Businessuncover endorsement; rather, the opinions and suggestions expressed above are those of specific analysts, specialists, and brokerage firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.)
Also Read | Axis Bank Q4 Results Preview: Profit might dip 4-6%; margins could contract sequentially
