Prime Highlights
- Tata Consumer Products shares rise 2% as growth businesses boost investor sentiment.
- Growth businesses jump 47% in Q1, now 36% of the company’s India business.
Key Facts
- Jefferies retains “buy” rating, citing confidence in FY27 revenue and margin growth.
- PhillipCapital raises target price to 1,350 rupees from 1,340 rupees.
Background
Tata Consumer Products shares climbed as much as 2%, lifted by strong growth in its newer business lines that boosted investor confidence in the company’s path ahead.
The stock ranked as the second best performer on the Nifty FMCG Index in early trade before some of those gains eased, trading up 1.10% at 1,100.10 rupees per share.
Analysts pointed to the company’s growth businesses, packaged foods brand Tata Sampann, health and wellness brand Organic India, and breakfast foods brand Soulfull, as the driving force behind its expansion, pulling the company past its long-standing tea and salt operations.
These growth businesses climbed 47% in the first quarter to 13.14 billion rupees ($136.52 million) and now account for 36% of the company’s India business.
Jefferies held on to its “buy” rating, saying leadership stays confident about hitting revenue growth and margin gains in FY27 as recent price increases start showing up in results. The brokerage also pointed to solid performance in core segments like tea and salt, paired with fast growth in the newer businesses, as support for the company’s broader strategy.
PhillipCapital kept its “buy” rating too, lifting its target price to 1,350 rupees from 1,340 rupees. The firm said price increases across salt and tea, combined with strength in the growth businesses, should help drive a turnaround in Tata Consumer’s core India operations.
