Tata Consumer shares gain on Goldman Sachs' upgrade, check details 

Shares of Tata Consumer Products Ltd zoomed over 8% on Wednesday after global brokerage Goldman Sachs raised price target of the Tata Group stock to Rs 1,200 per share. It also upgraded the stock to 'buy' against the previous neutral stance with a lower target of Rs 1,040 per piece. 

Tata Consumer shares gained 8.23% to Rs 1073.55 against the previous close of Rs 991.90 on BSE. Market cap of the firm rose to Rs 1.05 lakh crore on BSE. A total of 2.16 lakh shares of the firm changed hands, amounting to a turnover of Rs 22.74 crore on BSE. The share opened at Rs 1010.05 on BSE.

Tata Consumer shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day simple moving averages moving averages. 

The brokerage said Tata Consumer Products stock is poised for robust growth in its Earnings Per Share (EPS) over financial years 2025-2027.The brokerage also expects a recovery in the company’s tea margins, supported by price hikes. Goldman Sachs said Tata Consumer was actively driving innovation and expanding distribution in its growth businesses.

In Q3 of this fiscal, the firm reported a 17% rise in revenue on a year-on-year basis to Rs 4,443 crore. However, net profit for the period came flat at Rs 279 crore. 

Tata Consumer reported a 1.4% fall in its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell 1.4% from last year to Rs 564 crore.

EBITDA margin stood at 12.7%. Higher expenses capped both profit and margins for Tata Consumer during the quarter. 

However, consolidated EBITDA was flat at Rs 578 crore as rising Indian tea costs impacted margins despite higher sales.

Tata Consumer Products are engaged in the trading, production and distribution of Consumer products mainly Tea, Coffee, Water, Salt, Pulses, Spices, Snacks, Ready-to-Eat packaged food products etc. collectively termed as branded business.