Tata Consumer Products target price: Shares of Tata Consumer Products Limited have declined nearly 13.88% over the last three months. But Motilal Oswal Financial Services sees nearly 21% upside in the Tata Group stocks against the backdrop of resilient growth in tea business and promising growth portfolio.
The FMCG stock ended Friday’s trading session with marginal gains, after seeing sharp swings throughout the week.
Resilient domestic tea business and expansion of growth portfolio to gradually reduce independence on its core business are likely to benefit Tata Consumer Products in the long-term.
“The company continues to expand its growth portfolio with launches across segments. The growth portfolio is emerging as the next key growth driver, gradually reducing the company’s dependence on its core tea business while reshaping the product mix and tapping into new and large market opportunities,” stated the brokerage in its report.
Tata Consumer Products’ implementation of pricing actions are likely to offset cost pressure in its tea business. “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,” stated the brokerage in its report.