Tata Consumer Products Limited (TCPL) is the most prominent fast-moving consumer goods company and the world’s second-largest manufacturer and distributor of tea and coffee.The company has 11 tea blending and packaging factories, and 51 tea plantations in India’s Assam, West Bengal, Kerala, and Sri Lanka, producing over 7 crore kg of tea in India and employing about 59,000 people overall.
Additionally, the company produces over 30 million kg of black tea each year. It is the largest producer of Assam and Darjeeling tea and the second-largest producer of Ceylon tea.Chakra Gold, Tata Tea, Gemini, Tetley, and Kannan Devan are a few of the company’s five tea brands available in India. Another notable feature is that the company is the largest producer of instant tea outside of the United States and has a 100% export operation that is KOSHER and HACCP certified.
It has subsidiaries in Australia, the United Kingdom, the Czech Republic, India, and the United States of America. The company is known for its tea, coffee, and other products, including water, salt, legumes, spices, morning cereals, and snacks.Furthermore, the company is in a joint venture with Starbucks, which has 275 stores pan-India currently. With 2000 and more distribution,now reaching 1.3 million outlets in India, the company seeks to increase it to 1.5 million by March 2023.
The Tata Consumer share price at the time of writing the article is Rs. 780.70, and the market capitalisation stands at Rs. 71,964 crore.For any investor who wishes to invest in its shares, the most crucial aspect is the fundamentals and techniques of the company. How the company has performed and its track record plays a pivotal role.Let us focus on some of the points to ascertain if it is an excellent time to buy Tata Consumer shares:
1. In its Q1FY23, Tata Consumer reported the following results:
- For the quarter, revenue from operations totalled Rs. 3327 crore, up 11%.
- Consolidated EBITDA for the quarter increased by 14% to Rs. 460 crore.
- Group Net Profit increased by 38% to Rs. 277 crore.
- Operating revenue increased by 11% (or 10% in constant currency) more than the previous quarter.
- At Rs. 403 crore, profit before exceptional items and tax is 19% higher. The overall net profit for the group increased by 38% to Rs. 277 crore.
2. The company has effectively utilised its capital to generate profit and has seen its RoCE increase in the last two years.
3. Also, the return on equity (ROE) has improved in the last two years, which is a positive sign.
Since the company has seen negative growth in sales and profit along with the strong price momentum, it is an excellent opportunity for trade in Tata Consumer share price.
Conclusion
With TCPL’s strategy of advancing the premium trend in the food industry and foraying into significant opportunity size categories, it is undoubtedly a good time to buy the shares.
