Tata Global Beverages reported good set of results in 1QFY17. Consolidated revenue grew by ~4%/-11% to Rs.17.1bn/Rs.19.2 bn YoY/QoQ. The company’s EBITDA margin expanded by 283/531 bps to ~31%/44% YoY/QoQ. Adjusted PAT was Rs.1178 mn in 1QFY17 vs Rs.814 mn in 1QFY16 led by strong growth in operating profit.BOB Capital Markets Ltd value the stock at an average PE of 23x FY18e EPS with target price Rs.175 (28% upside).