Tata Consumer Products Ltd. is currently facing significant market fluctuations, with its share price experiencing a notable decline. As of October 21, 2024, the stock plummeted by approximately 9%, trading at ₹991.25 on the National Stock Exchange (NSE) during intraday deals. This drop follows the company’s recent quarterly earnings report, which revealed sluggish profit margins and growth figures that disappointed investors.
Main Points
- 1 Latest Updates on Tata Consumer Products
- 2 Financial Performance and Key Ratios
- 3 Key Financial Ratios
- 4 Tata Consumer Share Price Technical Analysis
- 5 Tata Consumer Share Price Important Levels
- 6 Market Sentiment and Analyst Opinions
- 7 Factors Influencing Share Price
- 8 Tata Consumer Share Price Future Predictions
- 9 Predicted Price Action for Tomorrow
Latest Updates on Tata Consumer Products
- Share Price Movement: Today, Tata Consumer’s shares fell to ₹991.25, down from a previous closing price of ₹1,090.15 on October 18, 2024. The stock has seen a significant decline of 9.3% in intraday trading due to disappointing earnings results.
- 52-Week Range: The stock has fluctuated between a 52-week high of ₹1,269.00 and a low of ₹872.00, indicating volatility in its performance over the past year.
Financial Performance and Key Ratios
In its latest earnings report for the second quarter of FY25, Tata Consumer Products reported:
- Net Profit: A marginal increase of 1% year-on-year, reaching ₹367 crore.
- Revenue Growth: Total revenue rose by 13% year-on-year to ₹4,214 crore; however, excluding recent acquisitions, this growth was only about 5%.
- EBITDA Margin: The EBITDA margin contracted by 30 basis points, settling at 14.9%, raising concerns among analysts regarding profitability.
Key Financial Ratios
| Ratio | Value |
|---|---|
| Price-to-Earnings (P/E) | 98.5 |
| Price-to-Book (P/B) | 6.12 |
| Market Capitalization | ₹110,139 crore |
| Dividend Yield | 0.70% |
From a technical perspective, various indicators suggest mixed signals:
- A 200-day moving average crossover, which appeared on October 8, indicates a potential bullish trend.
- Conversely, a recent MACD crossover has produced bearish signals on the weekly chart since October.
- Resistance Levels: The upper resistance level is around ₹1,124.
- Support Levels: The lower support level is identified at ₹981.15.
Market Sentiment and Analyst Opinions
Analysts have expressed concerns about the company’s future prospects due to its recent performance:
- Many analysts have highlighted that the sluggish growth in profit margins could lead to further declines in share price if not addressed promptly.
- Despite this setback, some analysts maintain a “Buy” recommendation based on the company’s strong brand presence and market share gains in specific segments like salt and coffee.
Several factors are currently influencing Tata Consumer’s share price:
- Quarterly Earnings Performance: The disappointing profit margins reported have led to negative sentiment among investors.
- Market Conditions: Broader market trends and economic conditions also play a vital role in shaping investor perceptions.
- Acquisitions Impact: Recent acquisitions like Organic India and Capital Foods are contributing positively to revenue but have not yet translated into improved profitability.
Looking ahead, analysts predict that Tata Consumer’s share price may continue to face downward pressure unless there are significant improvements in profit margins and overall financial performance in the upcoming quarters.
Predicted Price Action for Tomorrow
Given the current bearish sentiment and technical indicators, it is anticipated that Tata Consumer’s stock may test lower support levels around ₹981 in the near term.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
