Tata Consumer Stock Price Up 7%

Tata Consumer Stock Price Up 7% After Goldman Sachs Upgrades to BUY

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Tata Consumer Stock Price Up 7%: Shares of Tata Consumer Products Limited witnessed a significant surge today, climbing by 7% and closing at ₹1,060. This impressive rally comes on the back of a positive rating upgrade from global investment giant, Goldman Sachs.

Goldman Sachs has revised its outlook on Tata Consumer Products, upgrading the stock’s rating to ‘Buy’ from its previous stance. The firm also significantly increased its target price for the stock from ₹1,040 to ₹1,200, signaling strong confidence in the company’s future performance.

Tata Consumer Stock Price Up 7%
Tata Consumer Stock Price Up 7%

Tata Consumer Stock Price Up: Goldman Sachs’ Bullish ‘Buy’ Rating:

The ‘Buy’ rating from Goldman Sachs is underpinned by three key factors that point towards robust growth for Tata Consumer Products:

  • Improving Tea Margins and Price Increases: Goldman Sachs anticipates strong growth driven by enhanced profitability in the tea segment, coupled with effective price adjustments implemented by the company.
  • Innovation and Distribution Expansion: The brokerage firm highlights Tata Consumer’s focus on introducing new products (innovation) and expanding its reach through wider distribution networks as crucial drivers supporting a positive outlook for the stock.
  • Decreasing Net Interest Cost: Goldman Sachs expects the company’s net interest expenses to decline as Tata Consumer actively pays down debt incurred from previous acquisitions, further bolstering its financial health.

Tata Consumer Stock Price Up: Tata Consumer’s Impressive Share Performance

The recent 7% jump is part of a larger positive trend for Tata Consumer Products’ stock. Over the past five years, the company’s shares have delivered remarkable returns, soaring by over 300%. On April 3rd, 2020, the stock traded at ₹263.97, and by April 2nd, 2025, it had reached ₹1,073.55. Even in the shorter term, the stock has demonstrated strong momentum, with a gain of over 50% in the last two years.

The positive sentiment surrounding Tata Consumer continues into the current year, with the stock already gaining 17% so far in 2025. In the past month alone, the shares have risen by more than 12%.

Currently, Tata Consumer Products’ stock is trading below its 52-week high of ₹1,247.75, while its 52-week low stands at ₹884. The company boasts a substantial market capitalization of ₹1.05 trillion INR.

Tata Consumer Stock Price Up: Tata Consumer Financial Performance

While the stock market reacts positively to future growth prospects, Tata Consumer Products reported a slight dip of 6.5% in its net profit for the third quarter ending December 2024, reaching ₹281.92 crore compared to ₹301.51 crore in the same period the previous year.

However, the company demonstrated strong operational growth during the same quarter, with operating income increasing by 16.81% to ₹4,443.56 crore (from ₹3,803.92 crore). Total expenditure also saw an increase of 22% to ₹4,087.07 crore.

The company’s branded business, encompassing tea, coffee, water, and other value-added products, showed a robust growth of 18.3% to ₹4,026.15 crore. Notably, the branded business in India grew by 19.31% to ₹2,833.68 crore, while the international branded business saw a growth of 15.95% to ₹1,192.47 crore. The non-branded business also contributed with an 8.66% increase in revenue, reaching ₹446.12 crore.

About Tata Consumer Products Limited

Founded in 1962 (formerly known as Tata Global Beverages), Tata Consumer Products has a rich history in the Indian and global beverage markets. Starting with a strong presence in tea under the Tata Tea brand, the company expanded internationally with the acquisition of Tetley in 2000. Over the years, its product portfolio diversified to include coffee, water, salt, pulses, and spices. The company rebranded as Tata Consumer Products in 2020 to reflect its broader offerings. Sunil D’Souza has been serving as the Managing Director and CEO since April 2021, bringing extensive experience from his previous role at Whirlpool India Limited.

The positive upgrade from Goldman Sachs and the subsequent surge in Tata Consumer Stock Price Up 7% highlight the market’s optimistic outlook on the company’s strategic initiatives and future growth potential in the consumer goods sector.

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