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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500800 | NSE: TATACONSUM

Fundamental Analysis of Tata Consumer Products Ltd

About the Company - Tata Consumer Products Ltd

Tata Consumer Products Ltd. is a Public Limited Listed company incorporated on 18/10/1962 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L15491WB1962PLC031425 and registration number is 031425. Currently Company is involved in the business activities of Manufacture of other food products. Company’s Total Operating Revenue is Rs. 7932.29 Cr. and Equity Capital is Rs. 92.16 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Plantations - Tea & Coffee1, Bishop Lefroy Road, Kolkata West Bengal 700020investor.relations@tataconsumer.com
http://www.tataconsumer.com
Management
NamePosition Held
Mr. N ChandrasekaranChairman
Mr. Sunil D�SouzaManaging Director & CEO
Mr. Ajit KrishnakumarCOO & Executive Director
Mr. P B BalajiNon Exe.Non Ind.Director
Mr. Siraj ChaudhryIndependent Director
Dr. K P KrishnanIndependent Director
Mr. David CreanIndependent Director
Mr. Bharat PuriIndependent Director
Mrs. Shikha SharmaIndependent Director

Basic Stock Data of Tata Consumer Products Ltd

Last Updated: June 18, 2024, 11:42 am

Market Cap 1,06,784 Cr.
Current Price 1,121
High / Low1,270/822
Stock P/E79.3
Book Value 169
Dividend Yield0.70 %
ROCE10.6 %
ROE8.32 %
Face Value 1.00
PEG Ratio3.78

Competitors of Tata Consumer Products Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Norben Tea & Exports Ltd 14.6 Cr. 12.416.0/6.90 11.20.00 %2.57 %12.2 % 10.0
Mcleod Russel India Ltd 306 Cr. 29.338.0/17.4 23.90.00 %6.99 %77.3 % 5.00
Bansisons Tea Industries Ltd 2.53 Cr. 3.997.00/3.34 9.370.00 %2.66 %2.66 % 10.0
Rossell India Ltd 1,857 Cr. 493550/315139 78.80.08 %6.43 %4.59 % 2.00
Peria Karamalai Tea & Produce Company Ltd (PKTEA) 162 Cr. 522523/24030.3 6180.10 %4.16 %2.86 % 10.0
Industry Average845.19 Cr271.9550.59218.180.31%6.86%11.91%7.50

Tata Consumer Products Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2,7813,0703,0373,0083,0333,2083,1753,3273,3633,4753,6193,7413,734
Expenses2,3822,7082,7372,6092,6202,7472,7312,8702,9293,0213,1073,1963,197
Operating Profit400361300399413462444457434454512545537
OPM %14%12%10%13%14%14%14%14%13%13%14%15%14%
Other Income213-212423122911141128495375
Interest18181520201616162024282628
Depreciation63646667697072737375838294
Profit before tax321292198336348388385379482482450489491
Tax %27%19%33%28%25%26%25%27%26%23%23%27%27%
Net Profit27323774200286290239277389364290338364
EPS in Rs2.792.370.582.012.912.882.362.773.563.792.893.413.64

Tata Consumer Products Ltd Quarterly Chart

Tata Consumer Products Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,6407,3517,7387,9936,6376,7806,8157,2529,63711,60212,42513,78314,568
Expenses6,0176,5816,9867,2016,2715,9885,9766,4668,34510,05810,70711,92712,521
Operating Profit6237707527923667918397861,2921,5441,7191,8562,047
OPM %9%10%10%10%6%12%12%11%13%13%14%13%14%
Other Income11756170-77388873124-1639188328304
Interest7084878211792435278697387105
Depreciation96105129133117126116123242255278304334
Profit before tax5746377075001706627537358091,3111,4561,7941,913
Tax %25%26%26%43%118%30%25%36%34%24%26%25%
Net Profit417445510273-374555564574609301,0151,3201,356
EPS in Rs5.766.037.774.01-0.096.177.856.474.999.3010.1512.9613.73
Dividend Payout %37%36%29%6%-2,572%38%30%39%54%44%60%65%

Tata Consumer Products Ltd Profit & Loss Yearly Chart

Tata Consumer Products Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:16%
3 Years:9%
TTM:10%
Compounded Profit Growth
10 Years:12%
5 Years:27%
3 Years:16%
TTM:25%
Stock Price CAGR
10 Years:20%
5 Years:32%
3 Years:13%
1 Year:27%
Return on Equity
10 Years:6%
5 Years:7%
3 Years:7%
Last Year:8%

Last Updated: June 18, 2024, 10:13 am

Tata Consumer Products Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital62626262636363639292929393
Reserves4,5044,7485,7875,4316,1846,2026,9687,26913,72314,44215,05016,18416,061
Borrowings9161,3891,4381,3241,3547871,0681,1411,5861,6341,4121,6001,511
Other Liabilities2,7972,5952,6252,6412,2942,4992,3622,4083,0724,0504,5214,8864,526
Total Liabilities8,2798,7949,9119,4589,8959,55110,46110,88118,47320,21821,07522,76222,191
Fixed Assets4,2444,4345,1814,9224,6624,5734,7984,91311,65612,02312,59913,07013,193
CWIP49916047396313542495113247295216
Investments5675786116221,3661,4511,1611,1881,3238067971,4331,217
Other Assets3,4203,6914,0603,8673,8283,4654,3664,3555,3997,2767,4317,9657,566
Total Assets8,2798,7949,9119,4589,8959,55110,46110,88118,47320,21821,07522,76222,191

Tata Consumer Products Ltd Reserves and Borrowings Chart

Tata Consumer Products Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2791734224181167413562101,0821,6561,5161,461
Cash from Investing Activity 15624-1-207145145-3153-622-346-1,317-834
Cash from Financing Activity -438186-363-392-282-816-30-224-308-426-995-714
Net Cash Flow-338357-182-217029439152884-796-87

Tata Consumer Products Ltd Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-293.00769.00751.00791.00365.004.00838.00785.000.000.000.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Tata Consumer Products Ltd Free Cash Flow Chart

Tata Consumer Products Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days353128333235343524252122
Inventory Days162174176164168143146115132132144140
Days Payable938882688570616495111125136
Cash Conversion Cycle1051171221281141081208761454025
Working Capital Days558275867281886348584933
ROCE %11%9%9%4%9%9%8%9%8%9%9%11%

Tata Consumer Products Ltd Financial Efficiency Indicators Chart

Tata Consumer Products Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Jan 2024
Promoters34.71%34.71%34.72%34.72%34.72%34.72%34.45%34.44%34.45%34.42%34.42%33.56%
FIIs25.02%25.93%25.67%25.36%25.33%25.59%25.58%25.04%25.39%25.27%25.62%25.51%
DIIs13.99%13.30%13.41%13.71%13.99%14.91%15.12%15.85%16.33%16.87%17.06%16.89%
Government0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public26.27%26.04%26.20%26.20%25.96%24.78%24.82%24.65%23.82%23.43%22.90%24.02%
No. of Shareholders6,10,2746,61,2107,53,0198,00,7048,03,6198,08,7818,00,7498,19,0347,78,7107,75,4057,48,3758,73,056

Tata Consumer Products Ltd Shareholding Pattern Chart

No. of Tata Consumer Products Ltd Shareholders

Tata Consumer Products Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF11,386,2800.741272.991,694,0292024-06-24572.14%
HDFC Top 100 Fund - Regular Plan4,663,5981.68521.391,694,0292024-06-24175.3%
Nippon India Small Cap Fund3,470,8630.85388.041,694,0292024-06-24104.89%
UTI Nifty 50 ETF3,153,0980.74352.521,694,0292024-06-2486.13%
Aditya Birla Sun Life Flexi Cap Fund2,685,4591.53300.231,694,0292024-06-2458.52%
Kotak Emerging Equity Fund - Regular Plan2,269,6680.65253.751,694,0292024-06-2433.98%
Nippon India Large Cap Fund2,000,0001.04223.61,694,0292024-06-2418.06%
Canara Robeco Emerging Equities1,955,0001.1218.571,694,0292024-06-2415.41%
Axis Bluechip Fund1,694,0290.58189.391,694,0292024-06-240%
Aditya Birla Sun Life Focused Fund1,674,5032.72187.211,694,0292024-06-24-1.15%

Tata Consumer Products Ltd ROCE Trend

Tata Consumer Products Ltd EPS Trend

Tata Consumer Products Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)12.3213.0210.159.304.99
Diluted EPS (Rs.)12.3213.0210.159.304.99
Cash EPS (Rs.)17.6117.7714.7213.558.43
Book Value[Excl.RevalReserv]/Share (Rs.)183.00184.12176.56169.33161.52
Book Value[Incl.RevalReserv]/Share (Rs.)183.00184.36176.80169.56161.75
Revenue From Operations / Share (Rs.)159.59148.37134.82125.89104.57
PBDIT / Share (Rs.)26.5521.8020.1718.0715.23
PBIT / Share (Rs.)22.5918.5317.1515.3012.61
PBT / Share (Rs.)17.8019.3115.8014.238.78
Net Profit / Share (Rs.)13.6514.4911.7110.785.81
NP After MI And SOA / Share (Rs.)12.0712.9610.159.304.99
PBDIT Margin (%)16.6314.6914.9614.3514.56
PBIT Margin (%)14.1512.4812.7212.1512.05
PBT Margin (%)11.1513.0111.7111.308.39
Net Profit Margin (%)8.559.768.688.565.55
NP After MI And SOA Margin (%)7.568.737.537.384.77
Return on Networth / Equity (%)7.167.406.185.903.33
Return on Capital Employeed (%)9.869.118.808.217.03
Return On Assets (%)4.105.274.434.222.48
Long Term Debt / Equity (X)0.010.010.010.010.05
Total Debt / Equity (X)0.180.070.060.040.08
Asset Turnover Ratio (%)0.590.460.460.440.49
Current Ratio (X)1.202.122.252.282.87
Quick Ratio (X)0.751.431.531.552.01
Inventory Turnover Ratio (X)2.091.681.822.191.82
Dividend Payout Ratio (NP) (%)68.2446.3139.8829.0441.20
Dividend Payout Ratio (CP) (%)51.3936.9730.7422.3827.00
Earning Retention Ratio (%)31.7653.6960.1270.9658.80
Cash Earning Retention Ratio (%)48.6163.0369.2677.6273.00
Interest Coverage Ratio (X)19.4923.2425.5424.2418.03
Interest Coverage Ratio (Post Tax) (X)13.5414.6216.5415.9111.40
Enterprise Value (Cr.)106248.4165199.7071193.6857582.4127822.26
EV / Net Operating Revenue (X)6.994.735.734.962.89
EV / EBITDA (X)42.0032.1938.3034.5819.82
MarketCap / Net Operating Revenue (X)6.864.795.765.072.82
Retention Ratios (%)31.7553.6860.1170.9558.79
Price / BV (X)6.504.064.744.051.97
Price / Net Operating Revenue (X)6.864.795.765.072.82
EarningsYield0.010.010.010.010.01

Tata Consumer Products Ltd Profitability Ratios (%)

Tata Consumer Products Ltd Liquidity Ratios

Tata Consumer Products Ltd Liquidity Ratios (%)

Tata Consumer Products Ltd Interest Coverage Ratios (%)

Tata Consumer Products Ltd Valuation Ratios

Fair Value

Fair Value: 1,122.83

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 0.16% compared to the current price 1121

Intrinsic Value: 1,358.56

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 21.19% compared to the current price ₹1121

Last 5 Year EPS CAGR: 20.99%

*Investments are subject to market risks

Strength and Weakness of Tata Consumer Products Ltd Stock

StrengthWeakness
  1. The company has higher reserves (9,427.15 cr) compared to borrowings (1,320.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (8.54 cr) and profit (427.00 cr) over the years.
  1. The stock has a low average ROCE of 8.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 65.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 89.33, which may not be favorable.

Should I Buy Tata Consumer Products Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tata Consumer Products Ltd:
    1. Net Profit Margin: 8.55%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 9.86% (Industry Average ROCE: 9.4%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 7.16% (Industry Average ROE: 10.17%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 13.54
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.75
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 79.3 (Industry average Stock P/E: 10.86)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.18
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

FAQ

What is the latest fair value of Tata Consumer Products Ltd?

The latest fair value of Tata Consumer Products Ltd is ₹1122.83.

What is the Market Cap of Tata Consumer Products Ltd?

The Market Cap of Tata Consumer Products Ltd is 1,06,784 Cr..

What is the current Stock Price of Tata Consumer Products Ltd as on 25 June 2024?

The current stock price of Tata Consumer Products Ltd as on 25 June 2024 is ₹1,121.

What is the High / Low of Tata Consumer Products Ltd stocks in FY 2024?

In FY 2024, the High / Low of Tata Consumer Products Ltd stocks is 1,270/822.

What is the Stock P/E of Tata Consumer Products Ltd?

The Stock P/E of Tata Consumer Products Ltd is 79.3.

What is the Book Value of Tata Consumer Products Ltd?

The Book Value of Tata Consumer Products Ltd is 169.

What is the Dividend Yield of Tata Consumer Products Ltd?

The Dividend Yield of Tata Consumer Products Ltd is 0.70 %.

What is the ROCE of Tata Consumer Products Ltd?

The ROCE of Tata Consumer Products Ltd is 10.6 %.

What is the ROE of Tata Consumer Products Ltd?

The ROE of Tata Consumer Products Ltd is 8.32 %.

What is the Face Value of Tata Consumer Products Ltd?

The Face Value of Tata Consumer Products Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Consumer Products Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE