Tata Consumer Products share price, Tata Consumer Products target: Tata Consumer Products hogged the limelight on Dalal Street on Wednesday, April 24 after the Tata group's FMCG company announced mixed fourth-quarter results a day ago. The Tata group stock emerged as the top Nifty50 loser, declining as much as 5.7 to the day's low of Rs 1,106 on NSE. At 9:55 AM, the counter traded 4.46 per cent lower at Rs 1,121 on NSE. 

Tata Consumer Products Q4 results

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Post market hours on Tuesday, Tata Consumer Products reported a 26.69 per cent decline in consolidated net profit to Rs 212.26 crore in the fourth quarter ended March 31, 2024, impacted by exceptional items related to costs of amalgamation, acquisitions, asset write-downs and fair value loss on financial instruments.

The company had posted a consolidated net profit of Rs 289.56 crore in the same period a year ago, Tata Consumer Products Ltd (TCPL) said in a regulatory filing.

Consolidated revenue from operations in the quarter under review stood at Rs 3,926.94 crore as against Rs 3,618.73 crore, it added.

This was a tad lower than Zee Business Research desk's estimate of 10 per cent growth in revenue on year to Rs 3965 crore in the review period.

During the quarter, the company said it incurred exceptional items of Rs 215.8 crore.

"Exceptional item for the current quarter represents costs relating to scheme of arrangement of Rs 91 crore, costs related to acquisitions of Rs 10 crore, asset write-down of Rs 62 crore and fair value loss on financial instruments of Rs 53 crores," TCPL said in the filing.

Tata Starbucks

As for Tata Starbucks, the company said, "In line with our store addition plans, we added 29 net new stores during the quarter and entered 6 new cities.".

Management Outlook

"During the year, we recorded growth in India tea and salt businesses. Our premiumisation agenda continues to progress well with the premium portfolio in both tea and salt showing good growth and contributing to an increasing share of the overall portfolio," TCPL Managing Director & CEO Sunil D'Souza said.

He further said, "Our growth businesses -- Tata Sampann, RTD (ready to drink), Tata Soulfull, Tata SmartFoodz -- continued their strong growth trajectory with a revenue growth of 40 per cent in FY24. Tata Starbucks made consistent progress in its expansion agenda with a store footprint spanning 61 cities. Read more on TCPL Q4 results

Tata Consumer Products share price target: Morgan Stanley maintains overweight view

Morgan Stanley has maintained an overweight rating on the counter with a target of Rs 1,305, an upside potential of over 11 per cent from the previous close. Here are the key highlights the global brokerage highlighted in its note:

  • Organic top-line growth was slightly lower than estimates due to weaker India beverages growth
  • Company delivered 16 per cent EBITDA margin, the highest in the last 14 quarters
  • EBITDA margin growth aided by strong margin expansion in non-branded
  • EBTDA margin growth aided by international segments
  • Growth businesses performed well during Q4
  • Share in India branded business rose to 18 per cent in FY24
  • Market share improved in salt business, while the declining trend in tea continued

Tata Consumer Products Q4 results: Here's what Anil Singhvi suggests

Zee Business Managing Editor Anil Singhvi recommended a sell on Tata Consumer Products futures with a stop loss at Rs 1,188 for targets of Rs 1,155, Rs 1,145 and Rs 1,135. Here's what he said about the results: 

  • Results a mixed bag
  • Revenue below estimate 
  • India business underperforming

Tata Consumer Products dividend

Tata Consumer Products has recommended a final dividend of Rs 7.75 per equity share of Rs 1 for the financial year ended March 31, 2024.  According to the company's filing, the dividend, if approved at the ensuing 61st Annual General Meeting (AGM), will be paid after the AGM and within 30 days of its declaration.

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