Triple EMA Support + Rs 8.25 Dividend Declaration: Why This Tata Group Stock Looks Unstoppable Right Now?

One of the top food and beverage companies in the Tata Group is Tata Consumer Products. With operations in India and other countries, it is the world's second-largest tea firm. In addition to well-known brands like Tata Tea, Tetley, Tata Salt, and Eight O'Clock Coffee, the company's portfolio also includes brands like Tata Sampann and Tata Soulfull. The consumer products divisions of Tata Chemicals Ltd. and Tata Global Beverages Ltd. merged to establish the firm in February 2020. After the company announced its Q4 results and a huge 825% dividend for FY25, Tata Consumer Products' shares closed Thursday's trading session 0.94% higher at Rs 1,160.90 per share, with a market capitalization of Rs 1.15LCr.

Tata Consumer Products Dividend

"The Board has recommended a dividend of Rs. 8.25/- per equity share of Re. 1 each (825%) for FY 2024-25. The Dividend, if approved by the Shareholders at the ensuing 62nd Annual General Meeting, will be paid/dispatched (subject to deduction of tax at source) on or after June 21, 2025," said Tata Consumer Products in a stock exchange filing.

Tata Consumer Products Q4 Results

The company's net profit for the March 2025 quarter increased significantly from Rs 216 crore in the same quarter previous year to Rs 345 crore. Earnings Before Interest, Tax, Depreciation, and Amortization, or EBITDA, decreased 1.4% YoY to Rs 621 crore. The EBITDA margin shrank to 13.5%, a 250 basis point decrease. In Q4FY25, the company's sales climbed 17.3% (YoY) to Rs 4,608 crore.

The company's consolidated net profit increased by 52% to Rs 407 crore in Q4FY25 from Rs 268 crore in the same period last year. Its revenue for the quarter under review was Rs 4.608 crore, up 17% from Rs 3,927 crore in Q4FY24. The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) dropped by 1% to Rs 625 crore from Rs 631 crore in the year-ago quarter.

Sunil D'Souza, Managing Director & CEO of Tata Consumer Products said "We ended the year with a strong quarter, accelerating the momentum further. We delivered a topline growth of 17% during the quarter, bringing FY25 growth to 16%. The growth was broad based across India and the International business in line with the earlier trend. During the year, we recorded growth in our core businesses of India tea and salt in addition to driving strong growth in Tata Sampann and Tata Soulfull. While the RTD business was impacted in the earlier part of the year, we have seen a strong rebound as we exit the year. Our recent acquisitions- Capital Foods and Organic India performed well, and we are accelerating growth momentum through innovation and expansion into new channels of Food Services and Pharma."

"We delivered strong performance in the International Business with all our geographies demonstrating growth. Importantly, we delivered strong margin expansion, in line with our guidance. In India, we continued to strengthen our Sales & Distribution infrastructure and completed rollout of a next gen Go-to-Market platform. Channels of the future i.e. Ecommerce and Modern trade continue to fuel growth momentum," he added.

"We maintained momentum in our innovation agenda, with several product launches across categories, focusing on Health & Wellness, Convenience and Premiumization. We launched 41 new products during the year and our innovation to sales ratio was 5.2%. Overall, despite a tough operating environment, we delivered strong growth across businesses, and we will continue to drive consistent profitable growth as we move forward," Sunil D'Souza further stated.

Tata Consumer Products Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "TATACONSUM is currently trading at ₹1161.30, exhibiting a strong bullish trend, characterized by higher highs and higher lows. The stock has recently bounced off a significant support level, forming a bullish candlestick pattern over the last six trading sessions, along with a newly formed bullish hammer candlestick on the daily chart. This pattern indicates robust buying interest, which is further supported by increasing trading volumes. The Relative Strength Index (RSI) is currently at 78.66 and trending upwards, reinforcing the positive momentum."

"Furthermore, TATACONSUM is trading above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMAs), confirming the overall bullish trend. A breakout above the ₹1170 resistance could further accelerate buying momentum, potentially driving the stock towards ₹1240 & ₹1320. Investors may consider entering at the current price level, with a stop-loss at ₹1079 for effective risk management. While the outlook remains bullish, it is important to exercise caution with position sizing to manage any short-term volatility," the analyst further added.

Disclaimer

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