Tata Group Stock Declares 845% Dividend, Top Brokerage Says “Buy” The Stock

Anand Rathi has a buy call on the stock of Tata Consumer Products with a price target of Rs 900 per share.

According to Anand Rathi, Tata Consumer Products reported consolidated revenue growth of 14% YoY (12% in constant currency) to Rs 36,187 million during Q4-FY23 as compared to Rs 31,754 million during Q4-FY22.

"The growth was driven by growth in both branded and Non-branded business. Geographically, India business registered strong growth of 15% while international business grew 6% (constant currency); on a like-to-like basis 1% (excluding acquisitions)," the brokerage has noted.

Tea volumes continue to see growth

According to Anand Rathi, the India business of the company grew 15% in the quarter with India Beverages business growing at 8%, with tea volumes returning to growth, up 3% YoY.

India Foods business continued its strong trajectory, with volumes up by 8% in the quarter. The Salt business margin was almost back to the normative range," the report stated.

The International business recorded 11% revenue growth (1% ex acquisitions in constant currency). The EBITDA margins in international business was lower by 1% mainly due to commodity/input cost inflation and lag in price increases. The company has started to take price action in international business which is expected to fully flow through in subsequent quarter.

Target price of Rs 900 on the stock of Tata Consumer Products

According to Anand Rathi, Tata Consumer Products with its presence in high growing categories supported by consumption shift to packaged food. "Moreover, tailwinds of at-home consumption should continue to aid growth. Higher volume traction in India business, digitization across the supply chain coupled with synergy benefits in upcoming periods are the key growth drivers. We continue to remain positive on the stock and maintain our rating to BUY on the stock with a revised target price of Rs 900 per share," the brokerage has said.

The stock of Tata Consumer Products was last trading at Rs 781, as against Anand Rathi's target price of Rs 900 per share.

Disclaimer

The stock has been picked from the brokerage report of Anand Rathi. Greynium Information Technologies Pvt Ltd and the author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision. The above article should not be construed as a buy recommendation from our end, as we have just provided information based on the brokerage report.