Tata Consumer Products shares surge 8% on Goldman Sachs upgrade, target hiked to Rs 1,200

The brokerage expects strong earnings per share (EPS) growth for the company over FY25-27, driven by a recovery in tea margins through price hikes.

Additionally, Goldman Sachs highlights the company’s strong innovation and distribution expansion in its growth businesses. The reduction in net interest cost, as acquisition debt is paid down, is also seen as a positive. Although competitive intensity remains a concern, Goldman Sachs believes the worst is behind for Tata Consumer Products.

Also Read: Stocks in news: Tata Consumer, Swiggy, Godavari Power, Tata Motors, Indian Bank

Tata Consumer Products Q3 earnings

Tata Consumer Products reported a flattish net profit growth in the third quarter of FY25 at Rs 279 crore. This compares with Rs 279 crore in the same quarter of last year.

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Revenue from operations in the reporting period rose 17% YoY to Rs 4,444 crore. Consolidated EBITDA for the quarter was at Rs 578 crore, flat YoY, impacted by significant inflation in India tea costs.Also Read: Senco Gold to Rajesh Exports: 9 stocks that could skyrocket over 100%

Tata Consumer Products shares technical indicators

Technically, the stock’s relative strength index (RSI) is at 57.4. According to Trendlyne, an RSI below 30 is considered oversold, while above 70 indicates overbought conditions. Additionally, the MACD is at -6.3, which is below its center line, this is a bearish indicator.

Tata Consumer Products shares are trading above their 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day simple moving averages (SMAs) but remain below the 150-day, and 200-day SMAs.

Tata Consumer Products shares performance

On Tuesday, Tata Consumer Products shares closed at Rs 991.9 on the BSE, down 1%, while the benchmark Sensex declined 1.8%. The stock has dropped 17% in the last six months but has surged 41% in the past two years. The company’s market capitalization stands at Rs 98,147 crore.

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