Shares of Tata Consumer Products Ltd surged over 6% on Tuesday, hitting ₹1,054.30 in morning trade, after Goldman Sachs upgraded its rating on the stock from ‘Neutral’ to ‘Buy’. The brokerage also revised the 12-month target price to ₹1,200 from ₹1,040, citing strong earnings growth visibility and margin tailwinds.
Tata Consumer’s market capitalization has now crossed Rs 1.05 lakh crore. The stock opened at ₹1,015 and touched an intraday high of ₹1,073.15, significantly up from the previous close of ₹992.25.
Goldman Sachs expects robust EPS growth in FY25–27, driven by expansion in tea margins after recent price hikes, innovation-led growth, and rural market penetration. The brokerage also noted that acquisition-related debt is gradually being paid down, which should lower interest costs and support profitability.
While competitive pressures remain a risk, Goldman said the company is better placed now due to its evolving premium product portfolio and operational efficiency gains.
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