Shares of Tata Consumer opened lower on Wednesday as the company posted its first-quarter results after markets closed the previous day.

What Happened: The company reported a 16.3% year-on-year rise in its revenue to ₹4,352.07 crore, in line with analysts' estimates but its net profit fell 8.3% to to ₹290.32 crore, missing forecasts by a large margin.

The fast-moving consumer goods giant’s operating margin for the April to June quarter was 12.01%.

Brokerage Views: Brokerages had mixed views on the company after the results were released.

ICICI Securities has a "buy" recommendation for the stock and increased the target price to ₹1,385. The results were largely in line with its expectations. The brokerage was positive about the firm's India salt, segment which clocked a 9% revenue growth.

"Considering the company's large product portfolio, we believe spilt routes and additional salesmen will likely help improve productivity and throughput per store," it added.

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Nuvama Institutional Equities retained its "buy" rating on the company with an increased target price of ₹1,390. 

The brokerage was upbeat about Tata Consumer's margins in international business. In the foods section, the salts segment and pulses segment under Tata Sampann added to its positivity. The firm's recent acquisitions, including Capital Foods and Organic India, also delivered a decent performance, Nuvama said. The brokerage sees future worries due to inflationary pressure on tea and coffee prices.  

Phillip Capital said the results were in line with its estimates but took note of the dip in the beverages business. The brokerage maintains its "buy" call for the stock with a target price of ₹1,320.

Systematix Institutional Equities had a "hold" rating for Tata Consumer with a target price of ₹1,210 as results broadly matched its estimates. The brokerage also appeared bullish about the firm's Sampann business and its recent acquisitions.

Ambit Capital had a "sell" call for the stock with a target price of ₹945. Although the results were in line with its expectations, Tata Consumer's beverage business failed to impress the brokerage.

Price Action: Tata Consumer was trading 1.48% lower at ₹1,177.20 on Wednesday morning.

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