Tata Consumer Products, the FMCG player of Tata Group, has witnessed positive performance so far at the start of the new year 2025. The stock has jumped by 6% in less than 10 days of January, and there is potential for further upside. Tata Consumer is a technical pick of Prabhudas Lilladher, as its indicators are looking favourable for a fresh upside ahead.
Tata Consumer Share Price:
After market hours of January 9, 2024, Tata Consumer's share price ended at Rs 969.65 apiece, up by 0.9% on BSE with a market cap of Rs 95,942.85 crore. The FMCG stock has corrected sharply from its 52-week high of Rs 1,254.36 apiece and is less than Rs 100 away from its 52-week low of Rs 884 apiece.
YTD, the stock jumped by 5.90%. In a year, however, the stock plunged by 12% on BSE.
Prabhudas Lilladher on Tata Consumer Products:
In its latest report, Vaishali Parekh, Vice President - Technical Research at PL Capital - Prabhudas Lilladher said, Tata Consumer has witnessed a significant erosion from the peak level of Rs 1,250 zone and has shown signs of bottoming out near the Rs 880 level with a decent pullback witnessed with significant volume participation.
Parekh's note further explained that the RSI is hovering near the highly oversold zone and has indicated a positive trend reversal to signal a buy.
With the risk-reward ratio very favourable and with the chart technically looking very promising, Parekh's note said, "We suggest to buy the stock for an upside target of Rs 1,100, keeping the stop loss of Rs 880 level."
Tata Consumer has carried one stock split and hefty dividends but no bonus issue.
Stock Split: The stock split by 1:10 ratio in July 2010, where a face value of Rs 10 each was sub-divided to Re 1 each.
Dividend: Since August 2001, the company delivered up to 25 dividends, as per Trendlyne data. In the last 12 months, the stock distributed dividends of Rs 7.75 per share. Its current dividend yield is at 0.80%.
About Tata Consumer:
Tata Consumer Products Limited is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella.
The Company's portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals. Tata Consumer Products is the 2nd largest branded tea company in the world. Its key beverage brands include Tata Tea, Tetley, Eight O'Clock Coffee, Tata Coffee Grand, Himalayan Natural Mineral Water, Tata Copper+ and Tata Gluco+. Its food portfolio includes brands such as Tata Salt, Tata Sampann and Tata Soulfull.
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