Posted on April 24, 2025, by Niftynews
The stock market reacted sharply to the latest quarterly update from Tata Consumer Products, despite the company reporting robust growth in net profit and revenue. The Tata Consumer Products share price fell by more than 4% in early trade, even as the company announced a 59% year-on-year (YoY) jump in net profit for Q4FY25.
While the financials looked solid on the surface, deeper insights into operational margins and performance against expectations have left investors asking: Should you buy or sell Tata Consumer Products shares now?
Let’s break it down.
💼 Q4FY25 Highlights: Revenue Up, Margins Pressured
In the March quarter of FY25, Tata Consumer Products reported:
- ✅ Net Profit: ₹345 crore, up from ₹216.6 crore in Q4FY24
- ✅ Revenue from Operations: ₹4,608 crore, a YoY increase of 17.2%
- ⚠️ EBITDA: ₹620.8 crore, down 1.4% YoY
- ⚠️ EBITDA Margin: Fell 256 bps YoY to 13.5%
Although top-line and bottom-line figures came in strong, investors were concerned about the dip in EBITDA margins, which indicate cost pressures in the business, likely tied to input costs and slower volume growth in core segments.
🧠 Analyst Reactions: Long-Term Outlook Still Bullish
Despite the stock’s dip, several leading brokerages remain positive on the long-term prospects of Tata Consumer Products.
📊 Motilal Oswal: Buy Rating Maintained, Target ₹1,360
The brokerage highlighted the company’s ability to navigate margin pressures and its efforts to strengthen product positioning:
“We expect margin to recover in the Indian beverage business due to tea and salt price hikes, input stabilization, and promising early tea crop growth,” said Motilal Oswal.
They project:
- Revenue CAGR of 8%
- EBITDA CAGR of 13%
- PAT CAGR of 20% over FY25–FY27
Motilal Oswal upgraded its price target for Tata Consumer Products share to ₹1,360, indicating significant upside from current levels.
🧮 Nuvama Equities: Price Target Hiked to ₹1,335
Nuvama has also maintained its Buy stance while making minor EPS estimate revisions for FY26 and FY27. They increased their price target from ₹1,255 to ₹1,335, citing ongoing synergies from the Capital Foods and Organic India acquisitions.
These integrations are expected to boost operating efficiencies and product reach in the Indian food segment.
🔍 Technical Outlook: What the Charts Say
According to technical analysts at Lakshmishree Investments, Tata Consumer Products share price has formed a 25-week rectangle pattern and recently broke out of it, indicating potential for further upside.
- 💡 A breakout above ₹1,160 could trigger a rally toward ₹1,240
- 🔁 Any dip toward ₹1,072 is seen as a buying opportunity for positional traders
So, for those watching the charts, this correction might be less about panic and more about consolidation before a breakout.
🔮 Should You Buy Tata Consumer Products Shares Now?
Here’s a breakdown for different types of investors:
🕒 Long-Term Investors
If you’re focused on growth and consistent performance in India’s consumer staples and FMCG space, Tata Consumer remains a strong play. Margin pressure appears temporary, and structural drivers like premiumization, rural penetration, and international expansion are in place.
Verdict: Consider buying on dips.
💼 Medium-Term Investors
If your investment horizon is 6–12 months, the current volatility could provide entry points, especially if the stock consolidates near ₹1,070–₹1,100.
Verdict: Accumulate gradually.
⚡ Short-Term Traders
Look for a breakout above ₹1,160 with strong volume confirmation. Until then, sideways or slightly bearish movement is possible.
Verdict: Watch technical signals closely; avoid aggressive entry for now.
🌱 Growth Drivers Ahead
- 📦 Synergies from acquisitions (Capital Foods, Organic India)
- 🛒 Expansion in premium and value-added product lines
- ☕ RTD and coffee segment growth (especially with focus on U.S. market)
- 🌍 Solid performance in international markets
With consistent execution, the company is poised to maintain its double-digit growth trajectory, making Tata Consumer Products a compelling long-term pick in the FMCG sector.
📝 Final Word on Tata Consumer Products Share Price Action
The recent fall in Tata Consumer Products share price shouldn’t overshadow the company’s strong quarterly numbers and optimistic guidance. While margin concerns triggered a selloff, most brokerages remain bullish with upgraded price targets.
In a volatile market, stocks like Tata Consumer—backed by strong brands, global presence, and strategic acquisitions—offer a balanced mix of stability and growth.
