Tata Consumer Q4 Results Review - Beverages Volume Disappoints; Margins Surprise Positively: Nirmal Bang

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Tata Consumer Product Ltd.'s beverages volume growth for Q4 FY24 came in flattish (our estimate: 2% YoY growth). While the foods business volume growth (reported) was 5% YoY, adjusted for some sales from the Capital Foods acquisition (which came in earlier than our estimate of Q1 FY25 onwards) volume growth was 4% YoY - in line with our expectation. Sales (adjusted for Capital Foods) marginally missed our expectation by ~1%, but there was a big beat on gross and Ebita margins, which came in much higher than our estimates.Growth businesses formed 18% of India branded business in FY24 (15% in FY23) and grew by 40%. With new acquisitions Capital Foods and Organic India, the company aims to take contribution from growth businesses to 30% and growth from these businesses is also expected to be at ~30% going forward.We had already incorporated Capital Foods and Organic India acquisitions into our profit and loss and balance sheet FY25 onwards on publicly shared information and our own assumptions.Maintain 'Buy' with a target price of Rs 1,310 (55 times FY26E earning per share)..Click on the attachment to read the full report:.Tata Consumer Products Q4 Review - Performance Of Growth Businesses Crucial For Re-Rating: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Tata Consumer Q4 Results Review - Beverages Volume Disappoints; Margins Surprise Positively: Nirmal Bang

India foods business increased by 20% year on year in revenue terms, including the recently acquired Capital Foods.

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