Tata Consumer Shares Up 7.4% Today, 299% In 5Y; Goldman Sachs Says ‘BUY' This Tata FMCG Stock

Shares of Tata Consumer Products soared over 7.5% in early trade on April 2 after Goldman Sachs upgraded the stock to a 'Buy' rating and raised its share price target. The FMCG stock is now just 150 points away from its 52-week high, and if the rally continues, it could soon hit that level.

Tata Consumer Share Price Movements

At the beginning of trading today, Tata Consumer shares opened on a strong note at Rs. 1,080, rising 2.6 % from the previous close of Rs. 992.25. The FMCG stock surged to an intraday high of Rs. 1,073, jumping almost 8%. In the past five trading sessions, shares of this Tata Group stock have seen a 10.84% rise in prices. So far this year the stocks have surged 15.71%. In the last five years, Tata shares have rallied 298% in the past five years.

Tata Consumer Share Price Target

As per its latest broking report, Goldman Sachs upgraded Tata Consumer Products to a 'Buy' rating, raising its share price target to 1,200. The share has already crossed the previous target of Rs. 1,040 set by the broking firm. The broking cited strong earnings growth potential for FY25-27.

As per reports, one of the main reasons for this surge in Tata Consumer share prices is the expected reduction in net interest costs, as Tata Consumer pays down acquisition-related debt, strengthening its financial position.

In its report, Goldman Sachs mentioned that, "Although there is still tough competition in the FMCG sector, we believe Tata Consumer has overcome the greatest challenges. The company's ability to manage costs and maintain healthy profits makes it a strong long-term investment."

Tata Consumer Q3 FY25 Results

Tata Consumer Products, the FMCG arm of the Tata Group, reported its Q3 FY25 earnings with mixed performance. While the consolidated profit before exceptional items and tax surged 27.12% YoY to ₹513.27 crore, net profit remained flat at ₹279 crore, unchanged from last year.

The company's revenue from operations saw a strong 17% YoY growth, reaching ₹4,444 crore in the October-December period. However, consolidated EBITDA stood at ₹578 crore, showing no growth, as rising Indian tea costs impacted margins despite higher sales.

A year ago, the Tata FMCG major had posted a consolidated net profit of ₹364.43 crore in the same quarter, as per its regulatory filing.

About Tata Consumer Products

Tata Consumer Products Limited (TCPL) is the FMCG arm of the Tata Group, focusing on food and beverages. It is a leading player in India's packaged tea, coffee, water, and food segment with a strong global presence. The company owns popular brands like Tata Tea, Tetley, Tata Salt, Tata Coffee, and Himalayan Water. Tata consumer products Operates in over 40 countries, including India, the UK, the US, Canada, and Australia as per company data. Among the top FMCG players in India, competing with Hindustan Unilever, ITC, Nestlé, and Britannia.

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