Tata Consumer Products have introduced mixed results in the third quarter of FY25. On the one hand, inflation of tea and other raw materials affected the profits of Indian business, but the international branded beverage and non-branded business managed the company. This is the reason why big brokerage houses are expressing confidence in this stock and expecting further moves in it.
Motilal Oswal’s ‘by’ rating, expected 10% rise
Motilal Oswal has given a by -rating on this stock and has fixed its target price ₹ 1,130. Currently, the company’s stock has closed at ₹ 1,027, that is, it has a scope of 10% in the long term. In the last 6 months, this stock has fallen by 13.62%, but in the last one month it has jumped 12.28%. Now this stock is ready to move towards new heights.
Expectations from premium brands persist
The company’s Indian branded business may be under pressure due to expensive raw materials, but premium brands like Tata -rich, Tata Starbucks and Nourishco have shown growth. Tata rich income has increased by 23%, and Starbucks’ profits are also increasing. The company has increased the prices of tea and salt, which is expected to improve the margins of Indian business in the coming times.
Ready-to-drink segment and Starbucks performance
The income of Nourishco’s ready-to-drink segment declined by 2% to ₹ 1.58 billion, due to which a change in trade pricing has been reported. However, Tata Starbucks showed good growth and its income increased by 8%. The premium business also recorded a 12% increase, making it 15% of the total ready-to-drink business.
Share status:
Current price: ₹ 1,027
52-Veek High: ₹ 1,253.69
52-Veek Low: ₹ 882.90