Tata Consumer Products' Q2FY25 results have drawn mixed reactions from brokerages, with differing outlook on the company's performance and future prospects.
Morgan Stanley maintains an 'overweight' rating with a target price of Rs 1,273, citing rural demand recovery despite urban softness and a focus on market share over margins.
Meanwhile, Nuvama retains a 'buy' rating with a target of Rs 1,350 but lowers its FY25-27 earnings estimates. CLSA holds a more cautious view, maintaining a 'hold' with a target price of Rs 1,103 due to misses in key segments like tea and Nourisco, while Kotak retains an 'add' rating with a target of Rs 1,110, highlighting expected near-term pressure.
Morgan Stanley on Tata Consumer
'Overweight' with a target price of Rs. 1,273.
Rural segment demand is gradually recovering.
Urban demand has softened.
Market share over margins is the key focus.
Nuvama on Tata Consumer
'Buy' with a target price of Rs. 1,350.
Cut FY25/26/27E EPS by 4%/1.2%/3%.
Cut P/E multiple for India business to 60x (from 65x).
CLSA on Tata Consumer
'Hold' with a target price of Rs. 1,103.
Miss driven by tea (sales/margins), Nourisco and Starbucks.
Lower EBITDA estimates by 4-5% and PAT estimates by 4-7%.
Kotak on Tata Consumer
'Add' rating with a target price of Rs. 1,110.
Cut EPS estimates by 10-15%.
Management expects H2FY25 to remain under pressure.
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