⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TATACONSUM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | TATACONSUM | Market Cap | 1,05,956 Cr. | Current Price | 1,069 ₹ | High / Low | 1,221 ₹ |
| Stock P/E | 69.6 | Book Value | 174 ₹ | Dividend Yield | 0.77 % | ROCE | 10.0 % |
| ROE | 7.84 % | Face Value | 1.00 ₹ | DMA 50 | 1,134 ₹ | DMA 200 | 1,127 ₹ |
| Chg in FII Hold | -0.88 % | Chg in DII Hold | 1.26 % | PAT Qtr | 307 Cr. | PAT Prev Qtr | 285 Cr. |
| RSI | 37.2 | MACD | -21.2 | Volume | 11,13,333 | Avg Vol 1Wk | 17,83,688 |
| Low price | 945 ₹ | High price | 1,221 ₹ | PEG Ratio | 7.03 | Debt to equity | 0.05 |
| 52w Index | 45.0 % | Qtr Profit Var | -46.1 % | EPS | 16.1 ₹ | Industry PE | 19.2 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT rose from ₹285 Cr. to ₹307 Cr., but YoY profit variation (-46.1%) shows earnings weakness.
- Margins: ROE at 7.84% and ROCE at 10.0% reflect modest profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.05 indicates negligible leverage, ensuring financial stability.
- Cash Flow: Supported by strong FMCG operations, though margins remain thin.
💹 Valuation Indicators
- P/E Ratio: 69.6 vs Industry PE of 19.2 → significantly overvalued compared to peers.
- P/B Ratio: Current Price ₹1,069 vs Book Value ₹174 → ~6.14x, reflecting premium valuation.
- PEG Ratio: 7.03 → signals overvaluation relative to growth prospects.
- Intrinsic Value: Estimated fair value near ₹950–1,000, suggesting current price is slightly overvalued.
🥤 Business Model & Competitive Advantage
- Operates in FMCG with diversified portfolio including beverages, packaged foods, and staples.
- Competitive advantage lies in Tata Group backing, strong brand recognition, and wide distribution network.
- Exposure to both domestic and international markets provides scale and resilience.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive between ₹950–1,000, closer to intrinsic value.
- Long-Term Holding: Suitable for 5+ year horizon; strong brand and FMCG demand make it a solid long-term bet, though valuations are stretched.
✅ Positive
- Strong brand presence under Tata Group.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- DII holdings increased (+1.26%), reflecting domestic institutional confidence.
⚠️ Limitation
- Weak ROE (7.84%) and ROCE (10.0%) highlight modest efficiency.
- P/E ratio (69.6) is significantly higher than industry average.
- PEG ratio (7.03) signals overvaluation relative to growth.
📉 Company Negative News
- FII holdings decreased (-0.88%), showing reduced foreign investor confidence.
- Profit variation (-46.1%) highlights earnings pressure.
📈 Company Positive News
- DII holdings increased, reflecting domestic confidence.
- Strong quarterly PAT growth compared to previous quarter.
- Wide distribution network and diversified FMCG portfolio support resilience.
🏭 Industry
- FMCG industry is resilient, driven by consumer demand and brand loyalty.
- Industry PE at 19.2 shows sector is moderately valued compared to Tata Consumer’s premium.
- Rising demand for packaged foods and beverages supports long-term growth.
🔎 Conclusion
Tata Consumer Products demonstrates strong brand presence, low debt, and stable operations, but weak ROE/ROCE and stretched valuations limit near-term attractiveness. Entry around ₹950–1,000 offers better risk-reward. Long-term investors can hold for 5+ years, benefiting from FMCG demand and Tata Group stability, though caution is advised due to premium valuation and earnings volatility.