Tata Consumer Shares Down Today, But Analysts Remain Bullish

Shares of Tata Consumer started the day in the red on Thursday.

What Happened: Morgan Stanley maintained its “Overweight” rating on Tata Consumer Products with a target price of ₹1,288. The target indicates an around 14.5% upside from the last closing price of ₹1,124.65. The analysis highlights the management’s focus on growing the business, improving margins and enhancing return ratios for its existing operations.

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The core tea and salt segments are expected to achieve a volume growth of 5% and a value growth of 7-8% over the medium term. This steady growth is seen as a key driver for the company’s performance.

Tata Consumer Products will continue to evaluate and pursue inorganic growth opportunities to expand its portfolio. This strategy aims to bolster the company’s market presence and diversify its offerings.

Brands such as Nourishco, Sampann, Soulful, Capital Foods, and Organic India are projected to grow at a rate of 30%. The fast-moving consumer goods major anticipates annual improvements in EBITDA margins by 75-125 basis points. Earlier in the week, Nuvama also maintained its “buy” rating for the stock with a target price of ₹1,360.

Price Action: Tata Consumer’s share price was

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