Tata Consumer Q2: Brokerages Split After Q2 Results—What Morgan Stanley, CLSA And Others Say
Tata Consumer Products' Q2FY25 results have drawn mixed reactions from brokerages, with differing outlook on the company's performance and future prospects.
Tata Consumer Products' Q2FY25 results have drawn mixed reactions from brokerages, with differing outlook on the company's performance and future prospects.
Morgan Stanley maintains an 'overweight' rating with a target price of Rs 1,273, citing rural demand recovery despite urban softness and a focus on market share over margins.
Meanwhile, Nuvama retains a 'buy' rating with a target of Rs 1,350 but lowers its FY25-27 earnings estimates. CLSA holds a more cautious view, maintaining a 'hold' with a target price of Rs 1,103 due to misses in key segments like tea and Nourisco, while Kotak retains an 'add' rating with a target of Rs 1,110, highlighting expected near-term pressure.
Morgan Stanley on Tata Consumer
'Overweight' with a target price of Rs. 1,273.
Rural segment demand is gradually recovering.
Urban demand has softened.
Market share over margins is the key focus.
Nuvama on Tata Consumer
'Buy' with a target price of Rs. 1,350.
Cut FY25/26/27E EPS by 4%/1.2%/3%.
Cut P/E multiple for India business to 60x (from 65x).
CLSA on Tata Consumer
'Hold' with a target price of Rs. 1,103.
Miss driven by tea (sales/margins), Nourisco and Starbucks.
Lower EBITDA estimates by 4-5% and PAT estimates by 4-7%.
Kotak on Tata Consumer
'Add' rating with a target price of Rs. 1,110.
Cut EPS estimates by 10-15%.
Management expects H2FY25 to remain under pressure.
