Tata Consumers Q4 Results: What Are the Markets Expecting From FMCG Giant

The FMCG Giant with a Market Capitalisation of around Rs.1,11,720 crores is going to report its March quarter earnings today and various analysts are expecting a healthy growth in both Top-line and bottom-line frontiers.

What Are Expectations?

The Revenue is expected to have a growth of around 11-12% on a Year-on-Year(YoY) Basis, factored by a healthy growth of 18% in the food business, 7% YoY growth in the India Beverages Business and 7% growth in the business of Tata Coffee, the subsidiary of the company.

On the Bottom Line frontier, Net Profit is expected to rise anywhere between 10-20%. 

Brokerage firm Share Khan is expecting a volume growth of 3%  in the domestic Tea Business. Meanwhile Elara  Capital is also optimistic about Tata Consumer Products Limited’s performance for the fourth quarter of FY 2023-24. Anticipating growth driven by several key factors like strong and healthy performances in new ventures, increased volume in salt sales and also the strategic acquisition of Capital Foods, Furthermore, it is also estimated by them that Tata Global Beverages Limited(CLGT), is going to achieve a high single-digit growth backed by aggressive promotional offers.

Motilal Oswal Securities has said that the top-line revenue for the firm is expected to grow by 7% on a YoY Basis and the EBITDA margin is going to stand at an estimated level of 15.2% in the Q4 FY2023–24 which is around 9% higher than 14% of the same quarter previous year. 

Stock Performance

The Stock has given attractive returns of 65% in the last 1 year compared to  26% returns of the Indian Benchmark  Index Nifty50, The stock is up by 5.3% in the past 1 month and has made a 52-week high of Rs.1269 on the 11th March 2024. 

Conclusion: The FMCG Giant is expected to have decent growth in both the Top Line and Bottom Line basis driven by factors like revenue boost from Capital Foods and volume growth in the salt and Tea Business. The Commentary on the outlook ahead will be an important factor to take note of from the investors. The stock currently trades at Rs.1165 a piece down by -0.5% ahead of its Q4 earnings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.