On November 1, Tata Consumer’s stock experienced a significant uptick of one percent following the company’s announcement of its financial results for the quarter ended September. The FMCG giant revealed a consolidated net profit of Rs 359.18 crore, surpassing market expectations due to boosted margins resulting from strategic price hikes.
Tata Consumer beats Estimates
Morgan Stanley, a leading financial institution, maintained its ‘overweight’ recommendation for Tata Consumer stock. They set a target price of Rs 933 per share, indicating a promising 3.7 percent upside from the previous closing price of Rs 900. The decision was influenced by Tata Consumer’s results, which outperformed Morgan Stanley’s own estimates, reflecting the company’s strong financial standing.
Y-O-Y Figures
Comparing year-on-year figures, Tata Consumer’s net profit exhibited a notable growth of 1.18 percent, rising from Rs 354.98 crore in the corresponding quarter of the previous fiscal year. The company’s total revenue also demonstrated robust growth, reaching Rs 3,733.78 crore, marking an impressive 11.02 percent increase from Rs 3,363.05 crore reported in the same quarter the previous year.
One of the key highlights of Tata Consumer’s performance was the expansion of gross margins, which increased by 76 basis points (bps) year-on-year, settling at 42.5 percent. This uptick in margins underlined the company’s effective cost management strategies and pricing decisions, contributing significantly to its overall profitability.
In terms of business segments, the India business experienced substantial growth, recording an 11 percent increase, while the international business showcased an impressive 13 percent year-on-year growth. These figures underscored Tata Consumer’s strong market presence both domestically and internationally, further bolstering investor confidence.
As the clock struck 12:49, Tata Consumer shares were trading at a commendable 1.43 percent higher than the previous close, reaching ₹913.40. The positive market response highlighted investors’ confidence in Tata Consumer’s robust financial performance and strategic initiatives, positioning the company for continued growth and success in the market.
