ICICI Securities: Tata Consumer Products ‘Show Me’ Verses ‘Trust Me’ Value Creation Story

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.ICICI Securities Report.Consensus (including us) believes and hopes in ‘value creation story’ of Tata Consumer Products a 60% and 140% stock returns over one year and three years is testimony. The phase of ‘Trust me’ story is over. With TCPL’s FY22 valuations at a premium to Colgate, Godrej Consumer Products, Marico, it’s now a ‘Show me’ story.Tata Tea (India) needs to sustain 6-8% volume growth via formalization, market share gains due to regionalization and premiumisation. Tata Salt volume growth needs to accelerate to 8% (from approximately 5% earlier). It generates lowest revenue/grammage among packaged food products in India and hence distribution was capped due to higher freight costs. Merger of distribution (mixed load) will help to reduce freight cost and leverage the brand potential..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Tata Consumer Products ‘Show Me’ Verses ‘Trust Me’ Value Creation Story

ICICI Securities: Tata Consumer Products ‘Show Me’ Verses ‘Trust Me’ Value Creation Story

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