Tata Consumer Products’ share price surged in early trading on Wednesday after Goldman Sachs upgraded its rating and raised its price target. The stock climbed 8.15% to an intraday high of ₹1,073.15 on the NSE before settling at ₹1,063.40, up 7.17%.
Goldman Sachs shifted its rating from ‘Neutral’ to ‘BUY’ and increased the price target from ₹1,040 to ₹1,200, citing strong EPS growth potential for FY25-27. The brokerage also expects a recovery in Tata Consumer’s tea margins, driven by price hikes, and highlighted the company’s focus on innovation and expansion in its growth segments.
Despite these positives, Tata Consumer reported a 6% decline in group profit to ₹282 crore due to inflation in the tea segment and high interest costs. Compared to the previous quarter, net profit fell 23% from ₹367.2 crore. However, revenue for the quarter ending December 31 grew 17% year-on-year to ₹4,444 crore, fueled by strong performance in its India beverages and foods segment, which contributes about 70% of total revenue.
