TATACONSUM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | TATACONSUM | Market Cap | 1,13,265 Cr. | Current Price | 1,145 ₹ | High / Low | 1,221 ₹ |
| Stock P/E | 74.4 | Book Value | 174 ₹ | Dividend Yield | 0.72 % | ROCE | 10.0 % |
| ROE | 7.84 % | Face Value | 1.00 ₹ | DMA 50 | 1,117 ₹ | DMA 200 | 1,120 ₹ |
| Chg in FII Hold | -0.39 % | Chg in DII Hold | 0.72 % | PAT Qtr | 307 Cr. | PAT Prev Qtr | 285 Cr. |
| RSI | 56.6 | MACD | 20.9 | Volume | 15,86,977 | Avg Vol 1Wk | 14,37,364 |
| Low price | 1,007 ₹ | High price | 1,221 ₹ | PEG Ratio | 7.51 | Debt to equity | 0.05 |
| 52w Index | 64.3 % | Qtr Profit Var | -46.1 % | EPS | 16.1 ₹ | Industry PE | 21.8 |
📊 TATACONSUM (Tata Consumer Products Ltd.) shows moderate fundamentals with ROE of 7.84% and ROCE of 10.0%, reflecting average efficiency. EPS of ₹16.1 provides earnings visibility, but quarterly profit variation (-46.1%) highlights volatility. Valuations are stretched with a P/E of 74.4 compared to industry average of 21.8, and PEG ratio of 7.51 indicates expensive growth expectations. Dividend yield of 0.72% offers limited income support, while debt-to-equity ratio of 0.05 ensures financial stability. Technical indicators show neutral-to-positive momentum with RSI at 56.6 and MACD at 20.9, supported by price trading above both 50 DMA (₹1,117) and 200 DMA (₹1,120).
💰 Ideal Entry Price Zone: ₹1,050 – ₹1,100 (aligned with valuation comfort and DMA support).
📈 Exit / Holding Strategy: Hold for 3–5 years; consider partial profit booking near ₹1,200–₹1,220 resistance unless earnings growth improves significantly.
✅ Positive
- Strong brand presence in FMCG sector.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- DII holdings increased (+0.72%), showing domestic investor confidence.
- Quarterly PAT improved sequentially (₹285 Cr → ₹307 Cr).
- Price trading above DMA levels reflects technical strength.
⚠️ Limitation
- High P/E (74.4) compared to industry average (21.8).
- Low ROE (7.84%) and ROCE (10.0%).
- PEG ratio of 7.51 indicates overvaluation relative to growth.
- Quarterly profit variation (-46.1%) highlights earnings volatility.
- FII holdings declined (-0.39%), showing reduced foreign interest.
📉 Company Negative News
- Profit variation indicates volatility in earnings performance.
- Reduced foreign institutional participation.
📈 Company Positive News
- DII inflows (+0.72%) reflect domestic institutional support.
- Sequential PAT improvement shows operational resilience.
🥫 Industry
- FMCG sector benefits from steady demand and brand loyalty.
- Input cost inflation and competition remain risks.
🔎 Conclusion
TATACONSUM is a strong FMCG company with brand power and stable demand but stretched valuations and modest efficiency. Long-term investors should accumulate only near ₹1,050–₹1,100 for safety. Current holders can stay invested for 3–5 years, targeting exits above ₹1,200–₹1,220 if earnings growth does not justify premium valuations.