Ventura assigns 'sell' rating to this Tata group stock despite strong fundamentals: Do you own it?
Ventura Securiries believes a continued dependence on legacy products has led to a less favorable product mix, which may impact the company's margins.
Ventura Securities is bearish on the Tata group stock despite its strong fundamentals as it finds the stock unattractively priced. The stock over the last one year has delivered a negative return of 8 per cent.
Tata group stock to sell: Ventura Securities bearish on TCPL
Tata group stock to sell: Ventura Securities in its report dated December 20, 2024 has assigned a 'Sell' call to Tata Consumer Products Limited.
Tata group stock to sell: Richly valued says Ventura
Tata group stock to sell: Ventura has suggested a 'sell' on the scrip as it finds it richly valued even under the most optimistic projections.
Tata group stock to sell: Unattractively priced despite strong fundamentals
Tata group stock to sell: The company is logging low growth in its previously established businesses like Salt and the Tea business. Also, the company has overly optimistic expansion rargets of the Tata Starbucks venture and its inability to break even.
Tata group stock to sell: 3 key pointers justifying its sold fundamentals
Tata group stock to sell: The brokerage house has listed 3 key pointers justifying the strong fundamentals:
- Acquisition and introduction of fundamentally strong high growth businesses
- Accelerating expansionary focus across coffee markets
- Improving Margins
Tata group stock to sell: Valuations
The brokerage said, "while our estimate supporting a DCF valuation of INR 679 per share—after combining the valuation Tata consumer Products and its JV, Tata Starbucks (out of which only 50% of value is attributable to TCPL), the resulting price target is still notably lower than the current market price."
Tata group stock to sell: Target price
Tata group stock to sell: The brokerage expects the stock to hit Rs 679 in 24 months, implying potenial downside of over 25 per cent from the last traded price of Rs 907 per share on the BSE.