1 hr ago
Tata Consumer Shares Fall, Motilal Oswal Sees 21% Upside
Tata Consumer Products shares have fallen nearly 14% in the past three months.
Motilal Oswal Financial Services still thinks the shares could rise, and it recommends buying them.
It set a target price of ₹1,230 per share, which it says represents nearly 21% upside.
The brokerage believes the company can grow by selling more products beyond its main tea business.
It also expects the tea business to face challenges in FY27.
Flood disruptions and El Niño could affect tea-growing conditions, while price changes may help protect margins.
Motilal Oswal expects the company’s sales and profits to grow over the next few years.
Tata Consumer Products shares declined nearly 13.88% over three months and ended Friday’s session with marginal gains.
Motilal Oswal Financial Services reiterated its Buy rating and set a target price of ₹1,230 per share, implying nearly 21% upside.
The brokerage sees the company’s expanding growth portfolio gradually reducing its dependence on its core tea business.
Motilal Oswal expects tea production to remain flat in FY27, citing flood-related disruptions in Assam and West Bengal and El Niño effects.
The brokerage forecasts FY26–28 compound annual growth rates of 10% in revenue, 15% in EBITDA and 20% in profit after tax.
- Who
- Tata Consumer Products and Motilal Oswal Financial Services.
- What
- The brokerage reiterated its Buy rating and set a ₹1,230 target price for Tata Consumer Products shares.
- Where
- The report refers to Tata Consumer Products shares and tea-growing disruptions in Assam and West Bengal.
- When
- The shares’ three-month decline and Friday’s trading session are cited; the brokerage’s growth forecasts cover FY26–28.
- Why
- Motilal Oswal cites resilient tea-business prospects, pricing actions and expansion of the company’s growth portfolio.
Key facts
- Three-month share-price change
- Down nearly 13.88%
- Brokerage
- Motilal Oswal Financial Services
- Rating
- Buy, reiterated
- Target price
- ₹1,230 per share
- Implied upside cited
- Nearly 21%
- FY27 tea production outlook
- Expected to remain flat
- FY26–28 revenue CAGR forecast
- 10%
- FY26–28 EBITDA and PAT CAGR forecasts
- 15% and 20%, respectively
Quotes
Motilal Oswal Financial Services
Brokerage that issued the report on Tata Consumer Products.
“We expect tea production to remain flat in FY27 despite flood-related disruptions in Assam and West Bengal, alongside the adverse impact of El Niño on tea-growing conditions.”
livemint.com
“We expect TATACONS to clock a CAGR of 10%/15%/20% in revenue/EBITDA/ PAT during FY26-28. Reiterate BUY with an SoTP-based TP of INR1,230.”
livemint.com
Sources
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