Tata Consumer Q4 Results Review: Systematix Downgrades The Stock To 'Hold', Cuts Target Price  — Here's Why

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Systematix Report

We maintain Tata Consumer Products Ltd.'s FY26E-FY27E revenue estimates but lower PAT estimates by 3-5% to factor in more moderate margin expectations post-FY25 actuals; we build revenue/ Ebitda CAGR of 11%/14% over FY25-FY27E.

Tata Consumer Produtcs stock has appreciated by c.17% over the past three months, and currently trades at one-year forward P/E of 64x. At the current level, we believe most positives (improving tea realizations, strong foods’ growth, pickup in margins) are factored in, with limited visibility of any significant incremental positives.

We downgrade the stock to Hold from Buy; we roll over valuation to March-2027 (from December-2026) and value the stock at P/E of 56x (vs 58x earlier), resulting in lower target price of Rs 1,175 (from Rs 1,220).

While we remain positive on prospects of strong double-digit growth and improving profitability, we await a more attractive entry point for the stock.

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