Tata Consumer Products shares in focus today; should you buy the stock?

Tata Consumer Products shares hit a 52-week high on the BSE at Rs 1,216.3 apiece but soon pared gains and slipped over 1 per cent on Monday, January 15, 2024. The stock was on investors' radar after the company announced the acquisition of Capital Foods and Organic India. The company will also consider raising funds in a meeting on January 19.

As of 9:38 a.m., shares of Tata Consumer Products traded 1.57 per cent, or Rs 18.2, lower at Rs 1,140.5 apiece. The market capitalisation of the company stood at Rs 1,05,888.75 crore at around the same time.

Tata Consumer Products on Friday announced it will acquire 100 per cent of the equity share capital in FabIndia-backed Organic India for Rs 1,900 crore.

"The Board of Directors approved the acquisition of up to 100 per cent of the equity share capital of Organic India Private Limited," the filing read.

Further, in its investor presentation, Tata Consumer Products also said that it will acquire Ching’s Secret Maker Capital Foods for Rs 5,100 crore. The deal will be closed by Q4 FY24.

The company also said that the company's secretary, Neelabja Chakrabarty, resigned from the post to pursue an alternate career opportunity outside the organisation.

Should you buy, sell, or hold Tata Consumer Products stock?

Morgan Staley has maintained an 'overweight' rating on the stock and has raised the target price to Rs 1,305 apiece from Rs 933 earlier.

JP Morgan continued with a 'neutral' rating and gave a target of Rs 1,000 apiece.

Jefferies maintained a 'hold' and gave a target of Rs 1,140 apiece.

Tata Consumer Products share price: Past performance

In a year, shares of Tata Consumer Products have gained over 53 per cent against the Nifty 50's rise of over 23 per cent.

Zeebiz.com.