Tata Consumer Products shares tepid as Street unimpressed with Q4 earnings; analysts suggest ‘buy’

Despite decent March quarter earnings, the Street is unimpressed with Tata Consumer Products Q4 numbers as the share price of Tata Group FMCG company was trading near flatline. While most global brokerages were upbeat on the stock amid a mid-to-long term strong growth outlook.

Tata Consumer Products' share price on Wednesday marginally gained by 0.4 per cent to touch a day’s high level of Rs 737.5 apiece on the BSE. At around 11:55 AM, it was quoted at 734.35 apiece, up Rs 0.05 or 0.01 per cent from Tuesday’s closing of Rs 734.30 per share.

Tata Consumer Products Q4 results

Tata Consumer Products Ltd (TCPL) on Tuesday reported a 21.12 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 289.56 crore in the fourth quarter ended on March 31, 2023, led by a mixed growth from volume and price in India business.

While the company’s revenue from operations was up 13.96 per cent to Rs 3,618.73 crore during the quarter under review as against Rs 3,175.41 crore in the corresponding period a year ago period.

Brokerages on Tata Consumer Products

Jefferies and Nomura each retained a ‘buy’ rating on Tata Consumer Products shares, while Morgan Stanley maintained an ‘overweight’ rating on the stock.

Morgan Stanley said Q4 earnings were ahead of estimates and strong growth trends in salt and sampan categories are positive, while market share loss in tea is negative.

Whereas Nomura noted that the core business of Tata Consumer sees improvement and business growth strong performance is likely to continue, similarly, the international business sees sequential margin improvement during the quarter.

Tata Consumer Products' stock history

Tata Consumer Products shares have underperformed the market in the last one year by declining 10 per cent as compared to a three-and-a-half per cent rise in the Nifty50.

Year to date, the stock fell by over three per cent against two and a half per cent dip in the benchmark index.

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(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)