Shares of Tata Consumer Increase 8% on A Goldman Sachs Rating Upgrade
On Wednesday, April 2, 2025, Tata Consumer Products’ stock surged 8.1% during trading, reaching an intraday high of ₹1,073.15 per share on the NSE. The price of Tata Consumer’s shares was up 5.5% at ₹1,046.85 on the NSE at around 10 AM. The NSE Nifty, on the other hand, was up 0.33 percent at 23,242.5.
The company’s market capitalization was ₹1,03,585.19 crore. The stock’s 52-week high and 52-week low were ₹1,250.1 and ₹882.9 per share, respectively.
According to News, international brokerage Goldman Sachs has lifted the target price for Tata Consumer Products shares from ₹1,040 to ₹1,200 per share and upgraded the stock from ‘Neutral’ to ‘Purchase.’
According to reports, the brokerage thinks the firm is well-positioned for robust earnings per share (EPS) growth during FY25–27. The company’s net interest cost will likely lower as acquisition expenses are reduced. Additionally, price increases are anticipated to boost tea profitability. Although competitiveness is still an issue, Goldman Sachs thinks the worst is over.
According to News, Nomura also reiterated a “Purchase” recommendation for Tata Consumer Products, aiming for ₹1,250 per share. Nonetheless, CLSA kept its ‘Hold’ rating and lowered the target price from ₹1,049 per share to ₹992 per share.
Tata Consumer Products recorded a total net profit of ₹279 crore for the third quarter that ended on December 31, 2024, up from ₹278.87 crore for the same period the previous year. For the reviewed quarter, the company’s revenue was ₹4,443.56 crore, compared to ₹3,803.92 crore for the same period last year (Y-o-Y).
Since domestic tea accounts for around 60% of total income, the business noted that rising tea prices hurt Tata Consumer, which is well-known for its “Tetley” tea and its eponymous salt brand.
The spike in tea prices caused its Indian division, which makes up 56% of its revenues, and Purchases packaged goods like spices and pulses, to report a 43% decrease in profit for the quarter.
