Motilal Oswal Retains 'Buy' On Tata Consumer, Says Strong Harvest, Lower Tea Prices To Aid Profitability In H2

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Motilal Oswal Report

With the moderation of tea prices and strong tea crop growth this season, we expect Tata Consumer Products Ltd.’s margins to recover in the Indian beverage business from H2 FY26. We also anticipate strong traction in its growth businesses.

We expect the company to sustain its growth momentum, aided by the mid-tolong-term triggers such as-

1. strengthening and accelerating its core business,

2. exploring new opportunities,

3. expanding its product portfolio and innovation, and

4. enhancing its focus on premiumization and health and wellness products.

We expect Tata Consumer to clock a revenue/Ebitda/PAT CAGR of 10%/12%/13% during FY25-27. We reiterate our Buy rating with an SoTP-based target price of Rs 1,300.

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