Tata Consumer Products Q4 Net Profit Rose 23.4%

Picture Source: Internet

On April 26, Tata Consumer Products’ share price will respond to its strong Q4FY23 numbers in the early morning trade. A day earlier, the Tata Group reported a combined net profit of Rs 268.59 crore for the March ending quarter of FY22-23, up 23.46% from Rs 217.54 crore in the year-ago period.

Revenue from operation arose at Rs 3,618.73 crore, up 13.96% from Rs 3,175.41 crore in the year-ago quarter, the company mentioned in a regulatory filing.

Morgan Stanley, the brokerage firm, has shown an “overweight” rating on the stock and has a target price of Rs 904 per share. The Q4 earnings were fast of estimates, and strong growth trends in the salt and Sampann industries are an optimistic factor.

Conversely, the market share loss in the tea industry is negative, while the food business is presenting steady growth.

There was a decent performance in growth businesses, with Starbucks revenue rising 48% in Q4 and 71% in FY23.

The research house Nomura gave the stock a “buy” rating, with an average target price of Rs 880 per share.

The core business observed a development as growth businesses’ robust performance endures and international business perceives quarter-over-quarter margin perfection.

Over the medium term, the company is anticipated to expand its spreading reach by 50% and invest in growth businesses with new sub-category entries.

The broking houses witness the company nurturing its margin profile by premiumising its central categories and ramping up new categories with solid margins over the medium term.

Get Daily Prediction & Stocks Tips On Your Mobile