CLSA on Tuesday (March 19, 2024) started coverage on Tata Consumer Products. 

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CLSA assigned the Tata company giant an 'underperform' rating.

The brokerage has given a target of Rs 1288, which is only nine per cent upside from the Tata Consumer Products stock's current price.

CLSA says that the upside in the stock is limited from expensive valuations.

The stock is currently trading at 50X FY26CL EPS against the industry PE of 45X, says CLSA.

CLSA says that the long-term growth opportunity is already in price.

CLSA adds that Tata Consumer Products' margin is also in price. 

The brokerage opines that consolidation is expected from this price.

Predicting about the company's future prospects, CLSA said that the Tata group company's recent acquisitions would impact its return ratio.

Tata Consumer Products has recently purchased a stake in Capital Foods and Organic India.

The return ratio of international business of the company is already low, says the brokerage in its report.

CLSA said that it is necessary for the Tata group firm to improve its ROE from here onwards.

Tata Consumer Share Price

The stock of Tata Consumer was trading lower by 3.08 per cent, or Rs 36.60 at Rs 1150.00 at 2:44 pm on Tuesday.