BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
While there are no price hikes by Tata Consumer Products Ltd. in Q1 FY23, there are no extra schemes / promotions too.
With higher inflationary pressures for consumers and limited push by distributors due to higher cost of doing business (interest cost and freight cost), the volume off-take is likely muted - that's the insight from our conversations with Tata Consumer Products' distributors in Uttar Pradesh. They told us,
there is ~1% scheme on salt now. It is likely to smoothen steep price hikes and support salt volumes after some impact in Q4 FY22;
demand for tea increases in monsoon season. Monsoon appears delayed this year;
with higher interest costs and no extra trade schemes, the trade intends to maintain low inventory;
higher freight cost (a significant cost component for distributors (~40%)) continues to hurt distributor profitability; and
Tata Soulfull is now rolled out in Uttar Pradesh, Rs 10 stock-keeping unit is the outperformer.
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