Rs 200 profit per share? brokerage sees 20% upside potential on THIS Tata group stock

Tata Group Stock to BUY: Tata Consumer Products Ltd (TCPL) shares traded at Rs 1,142.10, up 0.18 per cent today, as brokerages maintained a positive stance on the stock amid expectations of strong margin recovery and sustained distribution-led growth.

The stock opened at Rs 1,153 and moved between a high of Rs 1,154 and a low of Rs 1,137.10. TCPL’s market capitalisation stands at Rs 1.13 lakh crore. The stock is trading close to its 52-week high of Rs 1,202.80, well above its 52-week low of Rs 882.90.

HSBC initiates coverage with ‘buy’

HSBC initiated coverage on Tata Consumer with a buy rating and a target price of Rs 1,340. The brokerage highlighted strong distribution expansion and expects the company’s growth portfolio to deliver FY25–28 CAGR of 26 per cent, rising to nearly 37 per cent of India revenue over time. HSBC has assigned a 55x PE multiple, citing TCPL’s aggressive expansion and acquisition-driven strategy.

Citi maintains ‘buy’, trims target slightly

Citi maintained its buy rating but cut the target price to Rs 1,350 from Rs 1,375. After a management interaction, the brokerage noted key takeaways:

– India tea business growth will likely be volume-led, with marginal price action in the second half.

– Salt price growth is expected to normalise in Q3.

– The ready-to-drink (RTD) beverages segment is back on a strong growth path.

– Capital Foods portfolio growth should improve gradually with multiple initiatives underway.

– Sampann continues to post strong growth across categories.

– Consolidated EBITDA margin may expand to 15 per cent by Q4, led by improvement in the international business.

– Citi said TCPL remains well positioned to capture long-term growth, with near-term earnings aided by margin recovery.

For Q2FY26, Tata Consumer posted an 11 per cent YoY rise in consolidated net profit to Rs 404 crore, compared to Rs 364 crore a year ago.

– Consolidated revenue rose 18 per cent to Rs 4,966 crore, driven by healthy performance across businesses.

– India business (71 per cent of revenue) grew 18 per cent to Rs 3,122 crore.

– International business rose 15 per cent to Rs 1,288 crore, supported by strong U.S. momentum.

– Profit in the India unit surged 47 per cent, while overseas business profit fell 12 per cent YoY.

– Consolidated EBITDA grew 7 per cent YoY, with EBITDA margin at 13.6 per cent. Sequentially, margins improved by 70 bps.