Tata Consumer Products Ltd. share price target

TGBL has reported a steady quarter led by 5.3 percentage growth in consolidated revenue on YoY basis against 5.7 percentage of growth in Q1FY19.

Tea market share to rise led by premiumisation, innovation TGBL commands 20% market share in tea segment in India. It expects to continue to grow above industry led by new launches. Moreover, it would be benefiting from a shift from unorganised to organised sales on the back of premiumisation, strong marketing campaigns (Jaago Re) and higher sales of new variants (Elaichi, Masala, Agni) while more innovation is expected to drive growth in UK (Tetley cold Infusions & Tetley decaf sleep) and help in consolidation of market share in other geographies. We expect 5.5%...

We believe TGBL-TCL's consumer business merger is EPS accretive as TCL's consumer business EBIT margin of 17% is higher than TGBL's 9% for FY19 in addition to synergy benefits on account of distribution and cost rationalisation resulting in 100-150 bps expansions in EBITDA margins. Though, India tea and salt business are low growth saturated categories, but strong cash flow of both the businesses would help TGBL to spend more in terms of A&P; for pulses, spices, water & other categories. We believe investment behind new categories would be the key to growth in future....

Focus on retaining market share in India branded tea business TGBL commands ~20% market share in tea segment in India and expects to continue growing ahead of the market led by new launches in the economy (elaichi and masala chai) and premium segments (Chakra Gold Activ+ and Kanan Devan Duet in southern markets). The company has opened six new Tata Cha stores in Bangalore with a view to scale up the out of home tea drinking experience format significantly. We estimate 5.5% revenue CAGR over FY19-21E led by new launches and premiumisation....

Revenue rose by 6.76% to Rs. 1802.59 Cr in Q1FY19 when compared to the previous quarter. Tata Global Beverages Ltd Q1FY19 results Comment

Tata Global Beverages (TGB) is an integrated natural beverage company that derives ~70% of revenue from branded tea business. It is a global player with about 60% of the consolidated revenue coming from markets outside India such as UK, US, Canada etc. Some of its key...

Consolidated sales for the quarter was flat at | 1730.4 crore (Idirect estimates | 1801 crore) on the back of 4.2% growth in tea business and 12.6% de-growth in coffee business. Non-branded business also declined by 15.1% during the quarter Operating margins witnessed an improvement of 300 bps to 13.6% (I-direct estimate 13.3%) which was entirely contributed by lower advertisement as a percentage to sales. The company reduced it's advertisement spend by 23.6% to | 126.7 crore...

Tata Global Beverage (TGBL) reported 4% consolidated revenue growth to | 1692 crore (I-direct estimate: | 1699 crore) during the quarter. However, underlying sales growth was 6% considering GST related adjustment and currency impact in the developed market Tea business witnessed growth of 3.5% while coffee saw 11% growth during the quarter. Branded business in CAA (Canada, America & Australia) region saw growth of 23% whereas Indian brands grew by 5% in Q2FY18. Europe, Middle East, Africa (EMEA)...

Revenue rose by 1.8% to Rs. 1704.42 Cr in Q1FY18 when compared to the previous quarter Revenue rose by 1.8% to Rs. 1704.42 Cr in Q1FY18 when compared to the previous quarter

ICICI Securities Ltd | Retail Equity Research As per media reports, Tata Global Beverages (TGBL) may sell its stake in various Tata group's listed companies to its parent, Tata Sons, in the coming months. TGBL currently owns ~| 725 crore worth of stake in other Tata group firms, viz. Tata Chemical and Tata Investment Corporation. TGBL has a 4.39% stake in Tata Chemicals and 0.29% stake in Tata Investment Corporation. With new Chairman, N Chandrasekaran, coming in, the company seems to be taking steps towards improving the...