7th Largest Nifty FMCG Stock By M-Cap Declares 775% Dividend: Buy The TATA Group Stock?

With a market valuation of Rs 1,01,796.11 Cr, Tata Consumer Products ranks seventh among India's largest FMCG firms. Among the company's portfolio products include Tata Tea, Tetley, Tata Salt, Eight O'Clock Coffee, Himalayan Water, and leading brands including Tata Sampann, Tata Soulfull, Tata Gluco Plus, and Tata Water Plus. The Tata Group stock undergoes the attention of market watchers as the Friday, May 24, 2024, record date draws closer for the dividend payment of Rs 7.75 per equity share.

Tata Consumer Products Dividend

"The Board had recommended a dividend of Rs 7.75 per equity share of Rs 1 each (775%) subject to approval by the shareholders of the Company at the 61st AGM. Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Friday, May 24, 2024, as the Record Date for determining entitlement of Members to receive the dividend for the financial year ended March 31, 2024, if declared at the 61st AGM. The payment of such dividend shall be subject to deduction of tax at source, as applicable and will be made on and from Monday, June 17, 2024: a) to all Beneficial Owners in respect of shares held in dematerialized form as per the data as may be made available by the National Securities Depository Limited and the Central Depository Services (India) Limited as of the close of business hours on Friday, May 24, 2024. b) to all Members in respect of shares held in physical form after giving effect to valid transmission or transposition requests lodged with the Company as of the close of business hours on Friday, May 24, 2024," said Tata Consumer Products in a stock exchange filing.

Tata Consumer Products Financials

In the January-March quarter of fiscal 2023-24 (Q4FY24), Tata Consumer reported a 22.5 per cent fall in net profit, to Rs 267.7 crore, from Rs 345.6 crore in the same period the previous year. The revenue from operations for the Tata Group firm jumped by 8.5% to Rs 3,927 crore in the fourth quarter of the current fiscal year, from Rs 3,619 crore in the year-ago quarter. After rising by 23% to Rs 629.6 crore in the March quarter from Rs 511.7 crore in the Q4FY23, EBITDA statistics show this growth. The EBIT margin climbed to 16 per cent, up 160 basis points from the same quarter last year, from 14 per cent.

Tata Consumer Products Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The current trading price of TATACONSUM stands at Rs 1073. Recent activity on the daily chart reveals a head and shoulders breakdown accompanied by a notable surge in trading volume, indicating a bearish movement. Should the price successfully close below the Rs 1070 mark, there's a likelihood of it reaching short-term targets of Rs 1000. Conversely, immediate support levels are identified at Rs 1040 and Rs 1000, representing potential buying opportunities during market dips."

"The Relative Strength Index (RSI) currently registers at 38.59, showing a bearish trend, which implies increasing selling momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently undergone a negative crossover, exiting the oversold territory. When analyzed together, these technical indicators suggest that TATACONSUM may achieve the lower target price of Rs 1000 in the near term," the analyst stated.

"To prudently mitigate risk, it's advisable to establish a stop-loss (SL) at Rs 1120. This precautionary measure helps safeguard investments in the event of an unforeseen market reversal. In summary, considering the technical analysis and prevailing market conditions, TATACONSUM appears to offer an attractive selling opportunity for those targeting the Rs 1000 price objective, provided that appropriate risk management strategies are implemented," Mandar Bhojane recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.