TATACONSUM - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.8

📊 Fundamental Analysis

Tata Consumer Products Ltd (TATACONSUM) is a solid FMCG player with a diversified portfolio, but current valuations and profitability metrics warrant caution

ROE (7.01%) & ROCE (9.16%): Below industry averages, indicating modest capital efficiency.

Debt-to-Equity (0.12): Very low leverage, financially stable.

Dividend Yield (0.78%): Low, but consistent.

P/E (80.1) vs Industry P/E (15.5): Highly overvalued.

PEG Ratio (8.54): Indicates expensive valuation relative to growth.

Book Value (₹202) vs Current Price (₹1,062): P/B ratio ~5.26 — expensive for a consumer staples company.

📈 Technical & Price Trend Insights

Current Price: ₹1,062

DMA 50 / DMA 200: ₹1,090 / ₹1,066 — price is below short-term average, near long-term support.

RSI (40.6): Approaching oversold zone.

MACD (-10.5): Bearish momentum.

Volume: Below weekly average — low conviction.

💰 Ideal Entry Price Zone

Based on valuation and technical support

Entry Zone: ₹980–₹1,020 This range aligns with historical support and offers better margin of safety. Below ₹980, it becomes a strong value buy.

🧭 If You Already Hold the Stock

Exit Strategy / Holding Period

Hold for 3–5 years if you believe in Tata Group’s FMCG expansion and brand strength.

Partial Exit near ₹1,250–₹1,300 if valuations remain stretched and ROE doesn’t improve.

Exit Trigger: If ROE stays below 10% and PEG remains above 5 for 2+ quarters.

Long-Term Forecasts

Year Target Range

2025 ₹1,345–₹1,512

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2027 ₹1,985–₹2,175

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2030 ₹2,785–₹2,945

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📌 Summary

Metric Value Verdict

ROE / ROCE 7.01% / 9.16% Below average

PEG Ratio 8.54 Overvalued

Debt-to-Equity 0.12 Very low risk

Dividend Yield 0.78% Modest

P/E vs Industry 80.1 vs 15.5 Highly overvalued

Entry Price Zone ₹980–₹1,020 Safer entry

Exit Strategy ₹1,250–₹1,300 Partial exit zone

Would you like a comparison with Nestlé India or Britannia to explore better FMCG picks?

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