Tata Consumer Products Ltd. share price target

Our analysis of Tata Starbucks financials over FY14-24 indicate It had revenue CAGR of 29% over FY14-24 and store count CAGR of 26%. The revenue/store has remained flat at ~INR 35mn.

TATACONS reported sales and EBITDA beat on improved margins in the unbranded business and MA

Tata Consumer Products (TATACONS) reported a healthy operating performance in 1QFY25. EBIT growth of 12% YoY was led by a strong performance in international branded beverage segment.

Tata Consumer Products Ltd’ (TCPL’s) operating performance was good with revenues and operating profit growing by 16% and 22% y-o-y respectively; higher interest cost kept adjusted PAT flat at Rs. 368 crore.

TCPL’s Q4FY24 was in line with our estimates. We reckon, stock trigger in FY25-26 is likely outperformance of growth businesses (which are gross margin accretive too).

LICI: Solid quarter; valuations overdone cut to HOLD. ALKEM: Good quarter; cut to SELL on stretched valuations. Monthly Chartbook: Fiscal consolidation to hold key. PWGR: In-line quarter, FY25 capex hiked; maintain BUY. TATACONS: Strong run continues. DIVI: Healthy margin recovery, heady valuations. TPW: Dull quarter; high valuations maintain HOLD. ESCORTS: Weakness persists - maintain SELL. TRCL: Tepid quarter, high capex overhang retain SELL. Metals & Mining: Ferrous read-across: Steel recovery in CY24 - ArcelorMittal