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    Buy Tata Consumer Products, target price Rs 925: ICICI Securities

    Synopsis

    Tata Consumer Products Ltd., incorporated in the year 1962, is a Large Cap company (having a market cap of Rs 66019.96 Crore) operating in FMCG sector.

    Tata Consumer ProductsAgencies
    Promoters held 34.72 per cent stake in the company as of 31-Mar-2022, while FIIs owned 25.36 per cent, DIIs 13.7 per cent.
    ICICI Securities has buy call on Tata Consumer Products with a target price of Rs 925. The current market price of Tata Consumer Products is Rs 714.85. Time period given by analyst is one year when Tata Consumer Products Ltd. price can reach defined target.

    Tata Consumer Products Ltd., incorporated in the year 1962, is a Large Cap company (having a market cap of Rs 66019.96 Crore) operating in FMCG sector.

    Tata Consumer Products Ltd. key Products/Revenue Segments include Tea, Other Operating Revenue, Royalty Income, Export Incentives for the year ending 31-Mar-2022.


    Financials
    For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 3222.80 Crore, down -.33 % from last quarter Total Income of Rs 3233.42 Crore and up 4.63 % from last year same quarter Total Income of Rs 3080.18 Crore. Company reported net profit after tax of Rs 289.24 Crore in latest quarter.

    Investment Rationale
    TCPL's transformational journey continued in FY22. It achieved rapid progress in distribution expansion – 2x direct reach in FY20-22 and introduced multiple innovative products to drive premiumization and market share gains. It integrated three acquisitions (Soulfull, Nourishco, Tata Q) quickly, and plans to reap benefits in FY22-24. While adspends have increased to 6.8% in FY22 from 6.3% in FY21, they are still lower than pre-covid levels of 7.7% (avg: FY17-20). TCPL continues to gain market shares – 100bps in Tea and 400bps in Salt. In FY22, working capital increased to 71 days (from 39 days in FY21), FCF generation was Rs4.7bn (0.6% FCF yield) and core-RoE improved 80bps to 13.7% (YoY).

    Promoter/FII Holdings
    Promoters held 34.72 per cent stake in the company as of 31-Mar-2022, while FIIs owned 25.36 per cent, DIIs 13.7 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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