Tata Consumers' stock fell 5% after the fourth quarter results; should you buy, sell or hold?
Shares of TATA Consumer Products are expected to continue their focus on April 24, with a year-on-year increase of 59% (YOY) to Rs 345 crore and beat street estimates. Revenue rose 17% in the March quarter to Rs 4,608 crore, compared with Rs 3,927 crore in the 454th millennium.
Powerful Q4 show beats street estimates
Tata consumers' performance is leading in Zee News Projections, which had a PAT box office of Rs 32.2 crore and revenue of Rs 4.556 crore. By the way, net profit rose 24%, while revenue rose 3.7% from Rs 444.4 crore of FY25 in the third quarter.
The Indian business continued to be the main driver of growth, with revenue rising to 4 Q4 from Rs 2834 crore in the previous quarter, and Rs 248 crore a year ago. The international business has a stable rate of Rs 11.94 crore, compared with Rs 11.92 crore in the third quarter and Rs 10.52 crore in the fourth millennium in the fourth quarter.
EBITDA edge impresses people; tea is soft and salt is on track
Although the amount of Indian tea increased by only 2%, it was estimated that it was missing, but the amount of salt reached expectations, up 5%. Rising global coffee prices, especially Robusta and Arabica (which grew by 97% and 65% year-on-year respectively), remain cost pressure.
However, the company's EBITDA performance stood out, prompting Nuvama to retain its “buy” phone while increasing its target price from Rs 1,255 to Rs 1,335. The broker slightly lowered earnings per share for FY26 and FY27, estimated at 1.3% and 1.7%, but said overall fundamentals remain strong.
Proposed dividend expenditure is Rs 8.25 per share
The board proposed a dividend of Rs 8.25 per share for fiscal 25 years. If approved at the 62nd Annual General Meeting, the dividend will be paid on or after June 21, 2025.
Despite long-term growth, stocks performed poorly in FY25
Tata Consumer's stock has provided 43% and 253% returns respectively over the past three and five years. However, stocks have fallen 0.76% over the past year, underperforming, including the Nifty50 and Sensex (including the Nifty50 and Sensex).
