Motilal Oswal has given Buy recommendation for Tata Consumer Products recommended buy rating on the stock with a target price of Rs 1000 in its research repo with a target price of Rs. 1000 in its research report issued on Sep 13, 2021

Motilal Oswal’s research report on Tata Consumer Products

All India tea production (from Mar-Aug’20) declined by 19% YoY due to: a) first flush of the crop being lost as plucking activity came to a standstill due to the COVID-induced lockdown, and b) unfavorable weather conditions in Assam and West Bengal. – Indian Assam tea is usually harvested in three flushes: • The first flush is from mid-March to late-June (forms 32% of the whole tea cycle volumes and is of the best quality), • The second flush is from July to September (forms 38% of volumes and is the second best in terms of quality), and • The third flush is from October to December (forms 28% of volumes and are of inferior quality v/s the first and second flush) (as per 2019 production data). – In CY20, tea production in India declined by 10% (to 1,258m kg), which created a supply crunch, leading to an increase in prices.


We expect a sales/EBITDA/PAT CAGR of 10%/18%/23% over FY21-24E. We arrive at an FY24E SoTP-based TP of INR1,000/share. We maintain our Buy rating.

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