Sharekhan has given Buy recommendation for Tata Consumer Products with a target price of Rs. 875 in its research report issued on Jun 23, 2021
Sharekhan’s research report on Tata Consumer Products
Tata Consumer Products Ltd (TCPL) is looking to transform itself into a multi-layered FMCG company by seamlessly integrating acquired businesses, streamlining supply chain & distribution and strengthening core foods & beverages businesses through innovation. Focused execution, robust distribution network and market share gains helped TCPL clock strong revenue and operating profit growth of 20% each in an uncertain FY2021. Distribution and supply efficiencies helped reduce working capital cycle by ~20 days; FCF/EBIDTA ratio improved to 80% and the company has strong liquidity of Rs. 3,000 crore. Strengthening of core businesses and synergies from acquired businesses would help TCPL record a revenue/PAT CAGR of 13%/16% over FY2021-24.
We maintain a Buy on the stock with a revised price target of Rs. 875.