Tata Consumer Products’ financial performance for the fourth quarter of fiscal year 2024 (Q4FY24) has had a notable impact on its stock price. Announced on Tuesday, the company’s results showed a decline in net profit, leading to a drop in share price.
Tata Consumer’s net profit for Q4FY24 stood at ₹267.7 crore, marking a 22.5% decrease compared to the ₹345.6 crore reported in the same quarter of the previous fiscal year. However, the company’s revenue from operations experienced an 8.5% growth, reaching ₹3,927 crore as against ₹3,619 crore in the corresponding period last year.
The announcement of the Q4 results was met with a negative reaction in the stock markets. Tata Consumer’s share price opened at ₹1,112.90 on the BSE, down from its previous close of ₹1,173.25, and fell further to ₹1,111.05, representing a decline of over 5%. At the time of writing, the share price has slightly recovered to ₹1,121.05, but remains approximately 4.5% below its previous closing price.
Despite the drop in net profit, brokerage firms have maintained a positive outlook on Tata Consumer’s stock. ICICI Securities has reiterated its ‘buy’ rating on the stock, setting a target price of ₹1,360, which represents an upside potential of 16%. The brokerage firm believes that the company’s growth businesses, which include acquisitions such as Capital Foods and Organic India, will drive its future performance.
Nuvama Wealth Management has also maintained its ‘buy’ call on Tata Consumer stock, with a target price of ₹1,400. The brokerage firm cited the company’s better-than-expected Q4 EBITDA and adjusted PAT as reasons for its positive outlook.
Overall, while the Q4 results may have caused a temporary setback in Tata Consumer’s share price, analysts remain optimistic about the company’s long-term prospects. The company’s consistent revenue growth, coupled with its strategic acquisitions and strong brands, is expected to support its future growth trajectory.
