TATACONSUM.NS
Tata Consumer Products Limited (TATACONSUM.NS) is a significant entity in the food and beverage industry, boasting a market capitalization of ₹996.54 billion. Its Price-to-Earnings (P/E) ratio of 84.17 suggests that the stock is priced high relative to its current earnings, possibly due to high investor expectations for future growth.
The company's Return on Equity (ROE) stands at 6.23%, indicating moderate efficiency in generating returns on shareholder investments. This figure implies that while Tata Consumer Products is profitable, its return on equity is not exceptionally strong, which may be an area of concern for some investors. However, the company's debt-to-equity ratio of 14.40% reflects a relatively low reliance on debt for financing, which can be considered a positive aspect for risk-averse investors.
Tata Consumer's current ratio of 1.45 indicates a healthy ability to cover short-term liabilities with its current assets, providing a buffer against financial instability. The operating margin is 11.32%, showing that the company retains a satisfactory portion of revenue after covering operating expenses, although there may be room for improvement in operational efficiency.
With a free cash flow of approximately ₹11.45 billion, Tata Consumer Products demonstrates the capacity to reinvest in its business and pursue new growth avenues. Yet, an earning growth rate of 3.8% highlights a relatively slow increase in earnings, which might indicate challenges in accelerating profit growth despite a healthier revenue growth rate of 12.9%.
The company's EBITDA margin of 14.61% suggests a solid operating profit structure, supporting stable business operations. Institutional investors own 33.3% of the shares, reflecting reasonable confidence from financial institutions in the company's performance and prospects.
This analysis offers insights into Tata Consumer Products' financial position and performance in the competitive food and beverage sector, equipping potential investors with a balanced view of the stock's long-term potential and the challenges it faces.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 953.00 B |
| P/E Ratio | 80.03 |
| ROE | 6.23 % |
| Debt to Equity | 14.401 |
| Operating Margin | 11.32 % |
| Free Cash Flow | 11.45 B |
| Institutional Holdings | 33.88 % |
| Revenue Growth | 12.90 % |
Tata Consumer Products' competitive landscape encompasses a diverse range of segments:
- Tea and Coffee: The beverage sector, particularly in tea and coffee, where Tata Consumer Products competes with both domestic and international brands.
- Packaged Food: An emerging area of focus for Tata Consumer Products, competing with both international giants and local players.
- Bottled Water: Competes with large global and local players in the bottled water market.
Tata Consumer Products stands out by leveraging its robust brand identity, extensive distribution channels, and commitment to quality, which are crucial factors in its competitive strategy across diverse segments. However, the fast-paced consumer market, dominated by both multinational corporations and local specialists, presents both opportunities for growth and challenges in sustaining market share. As the company continues to innovate and expand its product lines, addressing these dynamics will be key to maintaining and improving its position in the market.
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