Tata Consumer Products shares in tailpin after weak Q2 results; What should investors do?
Tata Consumer Products (TATACONSUM) Share Price: Shares of Tata Consumer Products fell sharply on Monday after the Tata Group company reported a weak set of quarterly earnings. The Tata group’s stock fell by Rs 107.5, or 9.8 percent, to Rs 987.2 apiece on the BSE.
At 11:50 am, shares of Tata Consumer Products (TATACONSUM) were down 9.1 percent on the day at Rs 995 apiece on loan.
After market hours on Friday, Tata Consumer Products reported that its consolidated profit rose 7.7 percent to Rs 364 crore in the July-September period. Revenue rose 12.9 percent to Rs 4,214 crore, according to an official filing.
The company registered a 16.4 percent growth in earnings before interest, taxes, depreciation and amortization (EBITDA) in the second fiscal quarter. Its EBITDA stands at Rs 625 crore.
According to Zee Business research, the Tata group company was expected to register a quarterly revenue of Rs 4,310 crore.
Market expert Anil Singhvi’s take on Tata Consumer Products Q2 results
Zee Business Managing Editor Anil Singhvi described Tata Consumer Products’ results as “very weak” at the start of the year due to poor performance in its India business.
Ahead of the opening bell on Monday, the market advisor suggested selling Tata Consumer Products futures with price targets of Rs 1,072, Rs 1,065 and Rs 1,045 with a stop loss of Rs 1,110.
Tata Consumer Products Share Price | What brokerages say
| A brokerage | Average | The target |
| Morgan Stanley | Being overweight | Revised to Rs 1,273 from Rs 1,344 |
| Jeffries | Hold on |
Revised to Rs 1,170 from Rs 1,190 |
| Goldman Sachs | Neutrality |
Revised to Rs 1,050 from Rs 1,086 |
| CLSA | Hold on |
Rs 1,103 |
According to Morgan Stanley, which maintained its ‘overweight’ rating on Tata Consumer Products but lowered its price target to Rs 1,273 from Rs 1,344 per share, the Tata group company exceeded its domestic benchmarks while its international business met fair value. .
The brokerage pointed out that the revenue growth of the Tata Consumer Products business weakened to 5 percent, with the decline in the price of tea.
Jefferies pointed out that the Tata group company’s EBITDA fell by 23 percent mainly due to inflation in its tea business. The brokerage maintained its ‘hold’ rating and reduced its target by Rs 36 to Rs 1,050.
Get all the latest stock market updates here. For all other news in trending sectors like technology, automobiles and personal finance, and much more, visit Zeebiz.com.
