Tata Consumer Products shares soar 8%; here is what you need to know

The stock was in heavy demand after a report by global broking firm Goldman Sachs.

According to news reports, analysts at Goldman Sachs are bullish on the stock. They said in its report that Tata Consumer Products is poised for strong earnings per share (EPS) growth over FY25-27.

The broking firm expects a tea margin recovery with price hikes taken by the company.

It further adds that strong innovation and distribution expansion in growth businesses bode well for the company. Goldman Sachs added that while competitive intensity remains a concern, the worst for the stock is over.

Tata Consumer Products' portfolio includes tea, coffee, water, salt, pulses, and more, and it is one of the leading names in the FMCG sector.

TCPL Q3 FY25 Results

The FMCG major reported a 6.5% decline in its consolidated net profit to ₹281.92 crore during the third quarter that ended December 2024 (Q3 FY25).

The company had posted a consolidated net profit of ₹301.51 crore in the October-December quarter a year ago, according to a regulatory filing from TCPL.

Revenue from operations rose by 16.81% to ₹4,443.56 crore during the quarter under review. It was ₹3,803.92 crore in the year-ago period.

TCPL's "India Foods and International business delivered another strong quarter of topline and market share", the company said in its earnings statement.

Tata Consumer's total income, which includes other income, was at ₹4,495.16 crore, up 16.34%.

In the December quarter, TCPL's overall branded business was up 18.3% to ₹4,026.15 crore. It was at ₹3,403.31 crore in the corresponding quarter of the last fiscal year.

Its revenue from the branded business in India was up 19.31% to ₹2,833.68 crore in the December quarter.

TCPL's international branded business was up 15.95% to ₹1,192.47 crore.