Tata Consumer - Growing Footprint In The F&B Industry: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Tata Consumer Prdoucts Ltd.’s acquisitions of Capital Foods Pvt. Ltd. and Organic India Pvt Ltd. are in line with their strategic priority to expand the total addressable market into adjacent, high-margin, and high-growth categories. The key highlights are as follows:These acquisitions will enable Tata Consumer to advance in its journey to become the leading fast moving consumer goods player, offering a wide range of products across pantry, liquid, mini meals, and sustainable categories. The incremental TAM in India and internationally will increase to ~Rs 1 trillion with these new additions.Through these acquisitions, Tata Consumer can benefit from multiple synergies, including access to new markets, wider distribution reach, optimized trade margins via increased shelf space, better operating leverage through economies of scale, and higher margins. We have factored in the financials of both the companies, assuming a fundraise via a rights issue amounting to Rs 35 billion, which is 50% of the total deal value (or 61% of the immediate funding requirement of Rs 57.25 billion). This is leading to an earnings per share dilution of 3%/2% in FY25E/26E and it will be EPS accretive from the third year of operations..Click on the attachment to read the full report:.Tata Consumer Shares Hit Record On Capital Foods, Organic India Acquisitions.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Tata Consumer - Growing Footprint In The F&B Industry: Motilal Oswal

Tata Consumer's acquisitions of Capital Foods and Organic India are in line with their strategic priority to expand the total addressable market into adjacent, high-margin, and high-growth categories

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Tata Consumer - Growing Footprint In The F&B Industry: Motilal Oswal

Tata Consumer's acquisitions of Capital Foods and Organic India are in line with their strategic priority to expand the total addressable market into adjacent, high-margin, and high-growth categories

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