Business

Tata Consumer Share Price Increases as the FMCG States That It Is Open For Acquisition

On June 7, a day after Tata Group chairman N Chandrasekaran stated that they are open to acquisitions and expanding into new categories in the annual general meeting, the share price of Tata Consumer Products increased by more than 2.5 per cent.

He said that we are currently growing both the food and beverage industries. Therefore, these businesses are very focused, and we must scale them. Additionally, we are funding R&D and innovation. We are considering new categories and potential acquisition targets.

Tata Consumer stock was trading at Rs 813.90 at 12:15 p.m. on the NSE, up 2.7 per cent from the previous year. The stock has increased by 15% from Rs 703 levels ever since the release of Q4 results in April. The company was in negotiations to purchase Bisleri in November 2022, but those negotiations fell through.

The management anticipates that India’s economy will continue to grow faster than the global market, leading to an increase in the proportion of revenue coming from the Indian market. According to N Chandra, the profit margin for Indian businesses is higher than that of other countries, which is around 11% for international trade and around 14% for branded businesses.

The company introduced 34 products last year. The Indian market currently accounts for 47% of the total revenue generated by TCPL’s branded tea, while the international market accounts for 11% of the company’s coffee sales. The company has set aside a $400 crore capex plan to foster growth.

Chandra also mentioned that NourishCo Beverages, a company subsidiary, plans to surpass revenue of Rs 1,000 crore in the current fiscal year, up from Rs 645 crore in FY23. Tata Consumer reported a consolidated net profit of Rs 268.59 crore for the quarter ended March 2023, up 23.46 per cent from Rs 217.54 crore in the same quarter the previous year. Operating income totalled Rs 3,618.73 crore, up 13.96% from Rs 3,175.41 crore in the corresponding quarter last year. The consensus price target for the stock is Rs 935.71, up 14% from the current price.

 

Malika Sahni

Recent Posts

How Your Skin Changes When You Stop Eating Sugar For 30 Days

Cutting sugar from your diet for 30 days can lead to noticeable improvements in your…

4 mins ago

Waqf (Amendment) Bill Will Benefit Muslims, Says All India Muslim Jamaat Chief

On Wednesday, All India Muslim Jamaat chief Maulana Shahabuddin Razvi affirmed the Waqf (Amendment) Bill…

44 mins ago

Waqf (Amendment) Bill 2024: Key Highlights And What It Means For Waqf Properties And Social Welfare

The Union government announced on Tuesday that it will introduce the Waqf Bill in the…

57 mins ago

Waqf Bill Sparks Political Storm In Parliament; Kiren Rijiju Leads The Debate

The Lok Sabha set an eight-hour Waqf Bill debate as the opposition slammed the rush.…

1 hour ago

Delhi High Court Rejects Accused’s Argument in Rape Case; Upholds FIR

Delhi High Court stated that an accused in a rape case cannot charge by arguing…

2 hours ago

Amba Stavam Is A Supernatural Experience, Listen To It: PM Modi On Chaitra Navratri

On Wednesday, Prime Minister Narendra Modi extended wishes on Chaitra Navratri's fourth day, highlighting devotees'…

2 hours ago