Top Dividend Paying Tata Stock: FMCG Recommended To BUY, Axis Securities Set Rs 1,350 TP For 5-30 Days

Tata Group-backed FMCG giant, Tata Consumer Products is an attractive bet for the short-term. On Saturday, in a special trading session, Tata Consumer almost touched its all-time high but shied away by merely Rs 4 before holding its over Rs 1,200 position. Nevertheless, Tata Consumer is a few rupees away from its highest price level. And it looks like, anytime soon, Tata Consumer may be hitting over Rs 1,300 mark as well. Because Axis Securities has recommended buying for a target price of Rs 1,350 apiece.

The target price is expected to be achieved in a span of 5 to 30 days.

On BSE, Tata Consumer's share price ended at Rs 1,206.85 apiece, up by 0.6% with a market cap of Rs 1,14,992.87 crore. The stock touched an intraday high of Rs 1,212.25 apiece, which was near its all-time high of Rs 1,216.30 apiece.

Tata Consumer is currently up by 76.2% from its 52-week low of Rs 685 apiece.

Axis Securities recommends the following in Tata Consumer shares:

Entry Price Level: Rs 1,194

Stop Loss: Rs 1,100

Target Price: Rs 1,350

The brokerage believes the target could be achieved in the next 5-30 trading sessions. This would be a nearly 12% upside that investors could fetch in a month in Tata Consumer.

In Q3FY24, Tata Consumer's revenue from operations increased by 9% (8% in constant currency) as compared to the corresponding quarter of the previous year, mainly driven by strong performance in India business which grew 10%. Profit before exceptional items and tax at Rs 513 Crores is higher by 27%, despite higher investments behind brands, Group Net Profit before exceptionals at Rs 372 Crores is up 31% driven by strong operating performance.

Tata Consumer is among dividend-paying stock and has turned ex-split only once but no bonus shares paid up till now. Since August 2001, the company delivered up to 24 dividends. In the last 12 months, the company paid up to 845% dividends aggregating to Rs 8.45 per share. It has a dividend yield of 0.7% on the current market price.

Additionally, Tata Consumer has split by 1:10 ratio since June 30, 2010. The face value has been trimmed to Rs 1 from earlier Rs 10. There are no bonus shares declared by Tata Consumer yet.

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. In India, Tata Consumer Products has a reach of over 201 million households, giving it an unparalleled ability to leverage the Tata brand in consumer products. The Company has a consolidated annual turnover of ~Rs. 13,783 Crs with operations in India and International markets.

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.