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Tata Consumer Products Ltd shares gained 8% on Wednesday, April 2, after brokerage firm Goldman Sachs upgraded its rating and raised its price target on the stock by over 15%. The brokerage now has a "buy" rating on the stock from its earlier rating of "neutral" with a revised price target of ₹1,200 from the previous target of ₹1,040 apiece. This is also implies a potential upside of 21% from the stock's previous closing price of ₹992.
4 apiece. Goldman Sachs said that Tata Consumer Products is poised for strong growth in its Earnings Per Share (EPS) over financial years 2025-2027. It also expects the company's tea margin to recover aided by price hikes.
Goldman Sachs said the Tata Consumer is currently undertaking strong innovation and distribution expansion in its growth businesses. Its net interest cost is also lower as acquisition debt is paid down, according to the Goldman Sachs note. Goldman Sachs said that while competitive intensity remains a concern, it believes the worst is behind for the stock.
Of the 30 analysts that have coverage on the stock, 25 have a "buy" rating, four have a "hold" rating and one has a "sell" rating. Tata Consumer Products shares gained 8% to hit an intraday high of ₹1,073.15.
The stock has gained 12.9% this year, so far. Also Read: Morgan Stanley warns of Coal India's earnings to face pressure unless this key metric improves.
