Is Tata Consumer overvalued or undervalued?

As of April 22, 2025, Tata Consumer is considered very expensive with a PE ratio of 85.98, significantly higher than its peers like CCL Products and Vintage Coffee, and despite a year-to-date return of 22.12%, it has underperformed the Sensex's 5.61% return.

As of 22 April 2025, Tata Consumer's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a PE ratio of 85.98, a Price to Book Value of 5.52, and an EV to EBITDA ratio of 44.27. These ratios suggest that Tata Consumer is trading at a premium compared to its peers.<BR><BR>In comparison, CCL Products, which is rated attractive, has a PE ratio of 37.63, while Vintage Coffee, rated very attractive, has a PE ratio of 37.6. This stark contrast highlights Tata Consumer's elevated valuation relative to its industry peers. Additionally, while Tata Consumer has shown a year-to-date return of 22.12%, it has underperformed the Sensex's return of 5.61% over the same period, further reinforcing the notion of overvaluation.

how big is Tata Consumer?

As of Jun 06, Tata Consumer Products Ltd has a market capitalization of 110,270.12 Cr, with recent net sales of 17,618.30 Cr and a net profit of 1,278.47 Cr over the last four quarters. Shareholder's funds are 20,001.08 Cr, and total assets are valued at 31,830.62 Cr as of Mar'25.

Market Cap: Tata Consumer Products Ltd has a market capitalization of 110,270.12 Cr and is classified as a Large Cap company as of Jun 06.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters, which includes Mar'25, Dec'24, Sep'24, and Jun'24, is 17,618.30 Cr. The sum of Net Profit for the same quarters is 1,278.47 Cr. This data is Consolidated.<BR><BR>Balance Sheet Snapshot: This is Consolidated data for the latest annual period ending in Mar'25. The Shareholder's Funds amount to 20,001.08 Cr, and the Total Assets are valued at 31,830.62 Cr.

What does Tata Consumer do?

Tata Consumer Products Limited is a Large Cap FMCG company that specializes in beverages and food products, originally founded as Tata Tea Limited in 1962. As of March 2025, it reported net sales of ₹4,608 Cr and a net profit of ₹345 Cr.

Overview: <BR>Tata Consumer Products Limited operates in the FMCG industry and is categorized as a Large Cap company.<BR><BR>History: <BR>The company was incorporated in 1962 as 'Tata Tea Limited'. It underwent a name change to Tata Global Beverages Limited on July 2, 2010, and was renamed to its current title, 'Tata Consumer Products Limited', on February 10, 2020. The latest quarterly results reported net sales and profit for the period ending March 2025.<BR><BR>Financial Snapshot: <BR>Net Sales: 4,608 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 345 Cr (Quarterly Results - Mar 2025) <BR>Market cap: Rs 110,428 Cr (Large Cap)<BR><BR>Key Metrics: <BR>P/E: 86.00 <BR>Industry P/E: 69 <BR>Dividend Yield: 0.74% <BR>Debt Equity: -0.04 <BR>Return on Equity: 6.42% <BR>Price to Book: 5.50 <BR><BR>Contact Details: <BR>Address: 1 Bishop Lefroy Road, Kolkata, West Bengal: 700020 <BR>Tel: 91-033-22813709/3779/3891/3988 <BR>Email: investor.relations@tataconsumer.com <BR>Website: http://www.tataconsumer.com

Has Tata Consumer declared dividend?

Yes, Tata Consumer Products Ltd has declared an 825% dividend, amounting to ₹8.25 per share, with an ex-date of May 29, 2025. The company has shown strong total returns over various periods, particularly in the long term.

Tata Consumer Products Ltd has declared an 825% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 825%<BR>- Amount per share: 8.25<BR>- Ex-date: May 29, 2025<BR><BR>Dividend Yield: 0.74%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was 14.24%, the dividend return was 0.88%, resulting in a total return of 15.12%.<BR><BR>Over the past year, the price return was -1.14%, the dividend return was 0.74%, leading to a total return of -0.4%.<BR><BR>In the 2-year period, the price return was 42.41%, with a dividend return of 1.89%, culminating in a total return of 44.3%.<BR><BR>For the 3-year period, the price return stood at 47.69%, the dividend return was 3.49%, resulting in a total return of 51.18%.<BR><BR>In the last 4 years, the price return was 64.18%, the dividend return was 4.03%, leading to a total return of 68.21%.<BR><BR>Finally, over the past 5 years, the price return was 196.81%, with a dividend return of 8.94%, resulting in a total return of 205.75%.<BR><BR>Overall, Tata Consumer Products Ltd has declared a significant dividend, and the total returns over various periods indicate strong performance, particularly in the longer term, with substantial price appreciation and consistent dividend contributions.

Who are the peers of the Tata Consumer?

Tata Consumer's peers include Hind. Unilever, ITC, Nestle India, Britannia Inds., Godrej Consumer, Dabur India, Colgate-Palmoliv, P&G Hygiene, Godfrey Phillips, and Gillette India. In terms of returns, Godfrey Phillips leads with 123.46% over one year, while Tata Consumer has a return of 5.42%.

Peers: The peers of Tata Consumer are Hind. Unilever, ITC, Nestle India, Britannia Inds., Godrej Consumer, Dabur India, Colgate-Palmoliv, P&G Hygiene, Godfrey Phillips, and Gillette India.<BR><BR>Quality Snapshot: Excellent management risk is observed at ITC, Nestle India, Britannia Inds., Colgate-Palmoliv, P&G Hygiene, and Gillette India, while Good management risk is found at Hind. Unilever, Godrej Consumer, and Dabur India. Average management risk is seen at Tata Consumer. Below Average growth is noted for Hind. Unilever, ITC, Britannia Inds., Godrej Consumer, Dabur India, Colgate-Palmoliv, and P&G Hygiene, while Average growth is found at Tata Consumer and Nestle India, and Good growth is observed at Godfrey Phillips.<BR><BR>Return Snapshot: Godfrey Phillips has the highest 1-year return at 123.46%, while Dabur India has the lowest at -10.97%. Tata Consumer's 1-year return of 5.42% is higher than Dabur India's but lower than Godfrey Phillips. Additionally, peers with negative six-month returns include Dabur India, Colgate-Palmoliv, and P&G Hygiene.

Who are in the management team of Tata Consumer?

As of March 2023, the management team of Tata Consumer includes N Chandrasekaran (Chairman), Sunil A D'Souza (Managing Director & CEO), and several other directors and executives, bringing diverse expertise to the company. Key members also include L Krishnakumar (CFO), Ajit Krishnakumar (COO), and independent directors like Bharat Puri and Shikha Sharma.

As of March 2023, the management team of Tata Consumer includes the following key members:<BR><BR>1. N Chandrasekaran - Chairman (Non-Executive)<BR>2. L Krishnakumar - Executive Director & CFO<BR>3. Siraj Azmat Chaudhry - Non-Executive & Independent Director<BR>4. Neelabja Chakrabarty - Company Secretary & Compliance Officer<BR>5. Bharat Puri - Non-Executive & Independent Director<BR>6. Shikha Sharma - Non-Executive & Independent Director<BR>7. Sunil A D'Souza - Managing Director & CEO<BR>8. P B Balaji - Non-Executive & Non-Independent Director<BR>9. K P Krishnan - Independent Director<BR>10. David Crean - Independent Director<BR>11. Ajit Krishnakumar - Executive Director & COO<BR><BR>This team brings a diverse range of expertise and leadership to the company.

Who are the top shareholders of the Tata Consumer?

The top shareholders of Tata Consumer include Tata Sons Private Limited with 28.69%, foreign institutional investors at 21.54%, and mutual funds holding 9.55%. The Life Insurance Corporation of India is the largest public shareholder with 8.48%, while individual investors own 18.27% of the shares.

The top shareholders of Tata Consumer include several key players. The largest shareholder is Tata Sons Private Limited, which holds 28.69% of the shares. Following that, foreign institutional investors (FIIs) collectively own 21.54%, while mutual funds are represented by 60 schemes, holding 9.55%. The highest public shareholder is the Life Insurance Corporation of India, with an ownership stake of 8.48%. Additionally, individual investors hold 18.27% of the company's shares. Overall, the majority of the shares are held by promoters, and there are no pledged promoter holdings.

When is the next results date for Tata Consumer?

The next results date for Tata Consumer is 23 July 2025.

The next results date for Tata Consumer is scheduled for 23 July 2025.

Are Tata Consumer latest results good or bad?

Tata Consumer's latest results show a 9.81% year-on-year growth in net sales, reaching a record ₹4,778.91 crores, but operating margins fell to 12.70% due to rising costs, raising concerns about profitability despite a 15.10% increase in net profit year-on-year. Overall, the results are mixed, with revenue growth overshadowed by margin compression.

Tata Consumer's latest results present a mixed picture. On the positive side, the company reported a 9.81% year-on-year growth in net sales, reaching ₹4,778.91 crores, which is the highest quarterly revenue in its history. However, this growth came alongside a concerning contraction in operating margins, which fell to 12.70% from 13.47% in the previous quarter. This margin compression is primarily attributed to rising input costs and competitive pressures, raising concerns about the company's pricing power and operational efficiency.<BR><BR>In terms of net profit, Tata Consumer achieved ₹334.15 crores, reflecting a 15.10% increase year-on-year, but a 3.10% decline quarter-on-quarter. This indicates that while the company is growing its top line, profitability is under pressure, which is a key concern for investors, especially given the stock's high valuation of around 88 times trailing earnings.<BR><BR>Overall, while the revenue growth is encouraging, the significant margin erosion and the challenges in maintaining profitability suggest that the results are not entirely favorable. Investors may need to weigh these factors carefully when considering the company's future prospects.

How has been the historical performance of Tata Consumer?

Tata Consumer has shown consistent growth in net sales and profits, with net sales increasing from INR 7,251.50 crore in March 2019 to INR 17,618.30 crore in March 2025, and profit after tax rising from INR 473.83 crore to INR 1,380.31 crore over the same period, despite some fluctuations in profit margins. The company's total assets and cash flow from operating activities have also improved significantly.

Answer:<BR>The historical performance of Tata Consumer shows a consistent growth trajectory in net sales and profit metrics over the years.<BR><BR>Breakdown:<BR>Tata Consumer's net sales have steadily increased from INR 7,251.50 crore in March 2019 to INR 17,618.30 crore in March 2025, reflecting a robust growth trend. The total operating income has followed a similar pattern, rising from INR 7,251.50 crore in March 2019 to INR 17,618.30 crore in March 2025. The operating profit (PBDIT) has also shown significant improvement, climbing from INR 943.04 crore in March 2019 to INR 2,672.60 crore in March 2025. However, the operating profit margin has fluctuated, peaking at 15.02% in March 2024 before slightly declining to 14.07% in March 2025. Profit after tax has increased from INR 473.83 crore in March 2019 to INR 1,380.31 crore in March 2025, although the PAT margin has decreased from 9.77% in March 2023 to 7.83% in March 2025. The company's total assets have grown from INR 18,473.04 crore in March 2020 to INR 31,830.62 crore in March 2025, while total liabilities have also increased, reflecting a rise from INR 18,473.04 crore to INR 31,830.62 crore over the same period. Cash flow from operating activities has improved, reaching INR 2,056.00 crore in March 2025, contributing to a closing cash balance of INR 1,377.00 crore. Overall, Tata Consumer has demonstrated strong growth in sales and profits, alongside an expanding asset base, despite some fluctuations in profit margins.

Should I buy, sell or hold Tata Consumer?

Why is Tata Consumer falling/rising?

As of 02-Dec, Tata Consumer Products Ltd's stock price is rising to 1,166.10, reflecting a 0.27% increase after a trend reversal. Despite a drop in investor participation, strong fundamentals and impressive long-term performance indicate continued investor interest and potential for growth.

As of 02-Dec, Tata Consumer Products Ltd's stock price is rising, currently at 1,166.10, reflecting an increase of 3.1 points or 0.27%. This upward movement comes after a trend reversal, as the stock has gained following three consecutive days of decline. Additionally, the stock has outperformed its sector by 0.31% today, indicating a positive performance relative to its peers.<BR><BR>Despite a recent drop in investor participation, with delivery volume falling by 78.4% against the 5-day average, the stock remains liquid enough for trading, suggesting that there is still interest among investors. The company's strong fundamentals are also a contributing factor to its rising price, highlighted by a low debt-to-equity ratio of 0.01 times and high institutional holdings at 44.27%. These institutional investors typically have more resources to analyze the company's fundamentals, which can support stock price stability and growth.<BR><BR>Moreover, Tata Consumer has demonstrated impressive long-term performance, with a year-to-date return of 27.44%, significantly outperforming the Sensex, which has only increased by 8.96% in the same period. This strong historical performance, combined with the current positive price movement, suggests that the stock is on an upward trajectory.

Which are the latest news on Tata Consumer?

Is Tata Consumer technically bullish or bearish?

As of December 3, 2025, Tata Consumer's technical trend is mildly bullish, supported by positive MACD and Bollinger Bands, despite mixed signals from KST and no clear trends from Dow Theory and RSI.

As of 3 December 2025, the technical trend for Tata Consumer has changed from bullish to mildly bullish. The weekly MACD remains bullish, supporting a positive outlook, while the monthly MACD is also bullish, indicating strength over a longer time frame. The Bollinger Bands show a mildly bullish stance on both weekly and monthly charts, suggesting some upward momentum. Daily moving averages are mildly bullish, reinforcing the short-term positive sentiment. However, the KST indicates a mixed view with weekly bullishness and monthly mildly bearishness, and both the Dow Theory and RSI show no clear trend signals. Overall, the current technical stance is mildly bullish, driven primarily by the MACD and Bollinger Bands.