Sharekhan Assigns Buy On Tata Stock, Hits New 52-Week High, Shares Can Give 18% Return

Brokerage firm Sharekhan has picked Tata Consumer Products Ltd. (TCPL) with a Buy call on the stock for a target price of Rs. 1,010 apiece. The stock is showing a potential upside of 18% from the stock's current level.

TCPL is focusing on strengthening its core business and expanding its addressable market to clock steady double-digit earnings growth in the medium to long run (revenues/PAT grew at CAGR of 13%/20% over FY20-23), according to Sharekhan.

Sharekhan retain Buy on Stock with a revised PT of Rs. 1,010

According to Sharekhan, TCPL is focusing on market share gains, product launches, network expansion, and cost restructuring to improve earnings growth over the next 2-3 years. Strong cash flows will be utilised for organic and inorganic initiatives to strengthen the key growth pillars in the coming year. Thus, with strategies in place, TCPL is well poised to achieve double-digit revenue and PAT CAGR of 13% and 17%, respectively, over FY2023-FY2025E. The stock trades at 53.7x/45.1x its FY2024E/FY2025E earnings. "With strong growth prospects and sturdy cash flows, we maintain our Buy recommendation on TCPL with a revised price target (PT) of Rs. 1,010. Any large inorganic deal focusing on enhancing shareholders' value will be a key trigger for valuations to improve in the near term," the brokerage has said.

Key Risks

According to Sharekhan, the key risks are, Any demand slowdown in the domestic or international market or increase in key commodity prices would act as a risk to our earnings estimates in the near term.

Stock Outlook

The share price of TCPL is currently trading at Rs. 856.40 apiece, down 0.26% compared to its previous close. Today, on 21 June 2023, the stock hit the new 52 week high at Rs. 877.20 apiece,, while the 52 week low it hit on 15 March 2023 at Rs. 686.60 apiece.

The stock jumped 11.57% in 1 month, and 21.85% in 3 months, respectively. It gave 17.44% positive return in 1 1 year. It gave 126.36% in 3 years. It gave 230.77% positive return in 5 years.

About - Tata Consumer Products Ltd. (TCPL)

Tata Consumer Products Ltd. (TCPL) is one of the leading companies of the Tata Group. It has a presence in the food and beverages business in India and internationally. The company is the second-largest tea company globally and has a significant market presence and leadership in many markets. It is a large cap FMCG company with a market capitalisation of Rs. 79,960.03 crore

Disclaimer - The stock of Tata Consumer Products Ltd. (TCPL) has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.