Shares of Tata Consumer Products Ltd. tumbled over 5% in early trade on Wednesday, April 24, after the company reported a 22.5% decline in its net profit for the March quarter of fiscal year 2024.
The company’s net profit stood at Rs 267.7 crore for the quarter ended March 31, 2023, down from Rs 345.6 crore reported in the same period a year ago. Total revenue from operations rose 8.5% to Rs 3,927 crore, compared to Rs 3,619 crore in the corresponding quarter of the previous fiscal year.
Tata Consumer’s earnings before interest, taxes, depreciation and amortization (EBITDA) for the March quarter grew 23% to Rs 629.6 crore, compared to Rs 511.7 crore in the year-ago period. The company’s board also announced a final dividend of 775% for FY24.
Despite the fall in share price, several brokerage firms retained their positive views on the stock. ICICI Securities maintained a buy call on the stock with a target price of Rs 1,360, implying a 16% upside. The brokerage firm said Tata Consumer’s Q4FY24 was in line with its estimates.
Nuvama Wealth Management also maintained its buy call on the stock with a target price of Rs 1,400, citing Tata Consumer’s Q4 EBITDA and adjusted PAT were ahead of its estimates while revenue was in-line with its estimates. The brokerage firm said it would revisit its estimates and target price for the stock after the earnings call.
Tata Consumer Products’ stock has significantly outperformed the equity benchmark in the last one year. The stock has jumped nearly 68% in the last one year (as of April 23 close) against a nearly 24% gain in equity benchmark Sensex.
