Tata Consumer Products received a positive note from HSBC, which initiated coverage on the stock with a buy rating and set a target price of ₹1,340. The brokerage said the Tata Group’s flagship food and beverage company is well-positioned for accelerated growth as it continues to strengthen and widen its distribution network across India.
HSBC highlighted that the company’s “Growth portfolio” is likely to be the key driver of performance over the next three years. The brokerage forecasts a robust 26% CAGR between FY25 and FY28, projecting that this portfolio will contribute 37% of India revenue by FY28, up from 28% in FY25.
The report also stated that the company’s strategy of aggressive acquisitions and distribution expansion is expected to yield strong returns. Reflecting this confidence, HSBC assigned a premium valuation of 55x PE, noting that its execution focus and scaling capabilities justify the higher multiple.
Tata Consumer Products is currently trading at ₹1,136.
Disclaimer: This article is based solely on the brokerage note provided and does not constitute investment advice. Investors should consult a certified financial adviser before making any investment decisions.