Tata Group Stock TCPL: Brokerage house ICICI Securities and shares are proposed to be invested. Brokerage says the company has benefited from its strong distribution network and expansion.
TCPL: What is brokerage opinion
Following the Q3 results of Tata Consumer Products Limited (TCPL), brokerage firm ICICI Securities says the company’s performance has strengthened. In India Tea, the company has increased its market share as well as its margins. The revision of tea prices has been beneficial. The company has a market share of 16 per cent in India Tea and 40.7 per cent in salt In one year, the price of salt has increased from Tk 21 per kg to Tk 24. Even then, the company had a record of selling salt in December. The company has increased its market share in all segments on TCPL FY22-24E. Starbucks gains were close to positive at 3FY22. The brokerage is holding stock advice with a target price of Rs 925.
Brokerage firm Sharekhan has suggested buying Tata Consumer stock with a target price of Rs 960. The brokerage firm says the company’s December quarterly performance has been as expected. Operating margin increased by 262 basis points to 14.34 percent. Due to this, the company’s net profit has been more than 20 percent. The company has benefited from the revision of the price of raw tea, will benefit more. This will have good support for improving margins. The stock is currently trading at 52.3x and 42.9x of FY2023E and FY2024E earnings, respectively. The ‘buy’ rating of the stock remains intact. At the same time, brokerage firm Nirmal Bang Securities has set a target price of Rs 870 per share for Tata Consumer.
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TCPL: Expected return up to 31%
Shares of Tata Consumer Products closed at Rs 732.50 on February 4. Thus, based on the target of Rs. 960, a strong return of Rs. Speaking of stock returns in the last one year, it has jumped by about 24 percent. In five years, this stock has proven to be a multibagger for investors. The stock has risen more than 400 percent.
TCPL: What was the result?
Tata Consumer Products Ltd’s consolidated net profit rose 22.19 per cent to Rs 290.07 crore in the December 2021 quarter. The company had posted a profit of Rs 237.38 crore in the same quarter a year ago. The company’s operating income jumped 4.52 per cent to Rs 3,208.38 crore in October-December 2021 from Rs 3,069.56 crore in the December quarter of 2020.
(Disclaimer: The investment advice here is provided by the brokerage house. This is not a G-Business opinion. Please consult your advisor before investing.)