ICICI Direct has given Buy recommendation for Tata Consumer Products recommended buy rating on the stock with a target price of Rs 950 in its research rep with a target price of Rs. 950 in its research report issued on Oct 21, 2022
ICICI Direct’s research report on Tata Consumer Products
Tata Consumer Products (TCPL) is one of the major FMCG companies present in tea, coffee & other beverages in India, UK, US, Canada and some other geographies. In India, it also has salt, pulses, spices and other food products. Its subsidiary NourishCo is present in packaged water & other beverages. The company is in JV with Starbucks, which has 300 stores in India. The company has 2000+ distribution directly reaching to 1.4 million outlets in India. This will be increased to 1.5 million outlets by March 2023 • TCPL also increased its rural/ semi urban distributors 4x to 8000+ after the consolidation of the consumer business.
We maintain our BUY rating on the stock. We value the stock at Rs 950 on ascribing 55x FY24 earnings multiple.