Tata Consumer Shares Jump 8% As Goldman Sachs Upgrades Rating To ‘Buy’; Check Target Price – News18
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Tata Consumer Products shares rose 8 per cent to an intraday high of Rs 1,073.15 on the NSE on Wednesday; Check target price
Tata Consumer Share Price
Tata Consumer Product Share: Tata Consumer Products shares rose 8 per cent to an intraday high of Rs 1,073.15 on the NSE on Wednesday after Goldman Sachs upgraded the stock to a ‘Buy’ rating and raised its target price to Rs 1,200 from Rs 1,040.
The brokerage expects strong earnings per share (EPS) growth for the company over FY25-27, driven by a recovery in tea margins through price hikes.
The brokerage has upgraded its rating on the stock to “buy” from “neutral,” raising the price target to Rs 1,200 from the previous Rs 1,040 per share. This revision implies a potential upside of 21 per cent from the stock’s last closing price of Rs 992.4.
Goldman Sachs expects Tata Consumer Products to witness strong Earnings Per Share (EPS) growth between FY25 and FY27. It also anticipates a recovery in the company’s tea margins, supported by price hikes. Additionally, Tata Consumer is actively driving innovation and expanding distribution across its growth segments.
The brokerage noted that the company’s net interest costs are declining as acquisition-related debt is being repaid. While competition remains a challenge, Goldman Sachs believes the worst may be over for the stock.
Among the 30 analysts covering the stock, 25 have a “buy” rating, four recommend “hold,” and one has a “sell” rating.
Tata Consumer Products shares surged 8 per cent to an intraday high of Rs 1,073.15 and have gained 12.9 per cent year-to-date.
Tata Consumer Products Q3 earnings
Tata Consumer Products reported a flattish net profit growth in the third quarter of FY25 at Rs 279 crore. This compares with Rs 279 crore in the same quarter of last year.
Revenue from operations in the reporting period rose 17% YoY to Rs 4,444 crore. Consolidated EBITDA for the quarter was at Rs 578 crore, flat YoY, impacted by significant inflation in India tea costs.
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