Tata Group company Tata Consumer (NSE: TATACONSUM) has informed that the company will acquire a 100 percent stake in Capital Foods.
The company’s board has approved this acquisition. Tata Consumer said it will acquire an enterprise value of Rs 5100 crore.
“The Board of Directors approved the acquisition of 100 percent of the issued equity share capital of Capital Foods Pvt Ltd,” Tata Consumer said in an exchange filing.
The company entered into a Share Purchase Agreement and Shareholder Agreement with the existing promoters of the target company to acquire all equity shares capital in a phased fashion.
According to the FMCG company, 75 percent of the equity shareholding would be purchased upfront. The remaining 25 percent will be acquired over the next three years.
Brokerage has set a price target of Rs 1500 for this share.
Stock Performance
On Friday, a rise was seen in the shares of Tata Consumer which closed at Rs 1,154.10 with a rise of 3.11 percent. The company’s return over the past three years has been 76.91 percent.
Tata Consumer Products unites the food and beverage brands of the Tata Group into one company. The company is the home of major brands such as Tetley and Tata Tea.
About Tata Consumer Products Ltd
Tata Consumer Products is an integrated company in the field of food and beverages. We rank among the top 10 companies for food and beverage within India with a plan to be an all-category FMCG major.
Tata Consumer Products was formed after the consumer goods division of Tata Chemicals Ltd. merged with Tata Global Beverages Ltd. in February 2020.
Tata Consumer Products is engaged in the production, trade, and sale of a variety of items which comprise Tea Coffee, Coffee Salt Pulses, Spices Snacks, Food products that are ready to eat, etc.
All of them are known as branded businesses. The Group operates branded businesses mostly within India, Europe, the US, Canada, and Australia.
The plantation business with no branding is located in India as well as the coffee and tea extraction companies are concentrated in India, Vietnam, and the US.
Fundamental Analysis of Tata Consumer Products Ltd
| Market Cap | ₹ 1,07,672 Cr. |
| Current Price | ₹ 1,159 |
| 52-wk High | ₹ 1,166 |
| 52-wk Low | ₹ 685 |
| Stock P/E | 87.2 |
| Book Value | ₹ 174 |
| Dividend | 0.73 % |
| ROCE | 9.32 % |
| ROE | 6.86 % |
| Face Value | ₹ 1.00 |
| P/B Value | 6.67 |
| OPM | 14.0 % |
| EPS | ₹ 13.7 |
| Debt | ₹ 1,511 Cr. |
| Debt to Equity | 0.09 |
| Year | 1st Target | 2nd Target |
| 2024 | ₹1180 | ₹1680 |
| 2025 | ₹1700 | ₹1740 |
| 2026 | ₹1800 | ₹1910 |
| 2027 | ₹1950 | ₹2054 |
| 2028 | ₹2100 | ₹2300 |
| 2029 | ₹2350 | ₹2500 |
| 2030 | ₹2545 | ₹2690 |
| Promoters Holding | |
| Sept 2022 | 34.72% |
| Dec 2022 | 34.45% |
| Mar 2023 | 34.44% |
| June 2023 | 34.45% |
| Sept 2023 | 34.42% |
| FII Holding | |
| Sept 2022 | 25.59% |
| Dec 2022 | 25.58% |
| Mar 2023 | 25.04% |
| June 2023 | 25.39% |
| Sept 2023 | 25.27% |
| DII Holding | |
| Sept 2022 | 14.91% |
| Dec 2022 | 15.12% |
| Mar 2023 | 15.85% |
| June 2023 | 16.33% |
| Sept 2023 | 16.87% |
| Govt. Holding | |
| Sept 2022 | 0.01% |
| Dec 2022 | 0.01% |
| Mar 2023 | 0.01% |
| June 2023 | 0.01% |
| Sept 2023 | 0.01% |
| Public Holding | |
| Sept 2022 | 24.78% |
| Dec 2022 | 24.82% |
| Mar 2023 | 24.65% |
| June 2023 | 23.82% |
| Sept 2023 | 23.43% |
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹7,252 Cr |
| 2020 | ₹9,637 Cr |
| 2021 | ₹11,602 Cr |
| 2022 | ₹12,425 Cr |
| 2023 | ₹14,568 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹457 Cr |
| 2020 | ₹460 Cr |
| 2021 | ₹930 Cr |
| 2022 | ₹1,015 Cr |
| 2023 | ₹1,356 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.15 |
| 2020 | 0.09 |
| 2021 | 0.05 |
| 2022 | 0.07 |
| 2023 | 0.07 |
Last 10 Years’ Profit Growth:
| 10 Years: | 11% |
| 5 Years: | 17% |
| 3 Years: | 20% |
| Current Year: | 19% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 6% |
| 5 Years: | 6% |
| 3 Years: | 7% |
| Current Year: | 7% |
Last 10 Years’ Sales Growth:
| 10 Years: | 6% |
| 5 Years: | 15% |
| 3 Years: | 13% |
| Current Year: | 11% |
Conclusion
This article is a complete guide about Tata Consumer Products Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We are here to provide timely updates about the stock market and financial products to help you make better investment choices. Do your own research before any investment.
