target price: Shares of Tata Consumer Products Limited have declined nearly 13.88% over the last three months. But Motilal Oswal Financial Services sees nearly 21% upside in the Tata Group stocks against the backdrop of resilient growth in tea business and promising growth portfolio.
The FMCG stock ended Friday’s trading session with marginal gains, after seeing sharp swings throughout the week.
Tata Consumer Products share price outlook
Resilient domestic tea business and expansion of growth portfolio to gradually reduce independence on its core business are likely to benefit Tata Consumer Products in the long-term.
“The company continues to expand its growth portfolio with launches across segments. The growth portfolio is emerging as the next key growth driver, gradually reducing the company’s dependence on its core tea business while reshaping the product mix and tapping into new and large market opportunities,” stated the brokerage in its report.
Tata Consumer Products’ implementation of pricing actions are likely to offset cost pressure in its tea business. “We expect tea production to remain flat in FY27 despite flood-related disruptions in Assam and West Bengal, alongside the adverse impact of El Niño on tea-growing conditions,” stated the brokerage in its report.
With moderation in tea prices from its peak and strategic price hikes in the tea business, MOFSL expects Consumer’s standalone gross margins to remain resilient in FY27.
“The company is expected to sustain its growth momentum, aided by the mid-to long-term triggers such as 1) strengthening and accelerating its growth business, 2) expanding its product portfolio and innovation, 3) enhancing its focus on premiumization and health and wellness products, and 4) higher innovation-to sales ratio,” as per report.
Tata Consumer share price target
The brokerage gave ‘Buy’ rating to the stock with a target price of ₹1230 per share. “We expect TATACONS to clock a CAGR of 10%/15%/20% in revenue/EBITDA/ PAT during FY26-28. Reiterate BUY with an SoTP-based TP of INR1,230.”
Tata Consumer share price trend
The stock closed 0.22% higher at ₹953.10 per share on BSE on Friday. Its share price value has 13.88% in three months, 14.84% in one year, and around 14.76% in two years.