On April 2, 2025, Tata Consumer Products’ share price surged by 6.74% to reach ₹1059 as of 10:13 AM. The stock had closed at ₹992 the previous day and opened at ₹1018 in the morning session. During the early trading hours, it hit an intraday low of ₹1015 and soared to a high of ₹1073. The stock witnessed strong buying interest, reflecting positive sentiment in the market.
Why is Tata Consumer Products Share Rising?
The sharp rise in Tata Consumer Products’ stock price is primarily driven by a bullish report from Goldman Sachs. The global brokerage firm upgraded its rating on the stock from “neutral” to “buy” and significantly raised its price target from ₹1040 to ₹1200. This upgrade implies a potential upside of 21% from the stock’s previous closing price of ₹992.4.
Goldman Sachs highlighted several key factors contributing to the expected growth of Tata Consumer Products:
- Strong EPS Growth Projection: The brokerage firm forecasts robust earnings per share (EPS) growth for Tata Consumer Products over the financial years 2025-2027.
- Tea Margin Recovery: The company has undertaken price hikes, which are expected to aid in margin recovery, particularly in its tea business.
- Innovation and Expansion: Tata Consumer Products is actively expanding its distribution network and introducing new product innovations, strengthening its growth prospects.
- Lower Interest Costs: The company has been paying down its acquisition debt, leading to reduced net interest costs.
- Market Confidence: Goldman Sachs believes that while competition in the FMCG sector remains high, the worst phase for Tata Consumer Products’ stock is now over.
Tata Consumer Products Q3 FY25 Financial Performance
Despite the recent surge in its stock price, Tata Consumer Products had reported a 6.5% year-on-year decline in its consolidated net profit for Q3 FY25, standing at ₹281.92 crore.
The company’s net profit had been ₹301.51 crore in the corresponding quarter a year ago. However, revenue from operations grew by 16.81% to ₹4443.56 crore, compared to ₹3803.92 crore in the same period last year.
The company’s India Foods and International businesses continued to perform well, driving the topline growth.
Market Performance and Analyst Ratings
Tata Consumer Products’ stock has gained 12.9% so far in 2025. Over the past year, the stock had declined by 6.34%, but the latest rally has boosted investor sentiment.
Among the 30 analysts covering the stock:
- 25 have a “buy” rating,
- 4 recommend “hold,” and
- 1 has a “sell” rating.
Impact on FMCG Sector and Broader Market
The rise in Tata Consumer Products’ stock has contributed to a mixed performance in the FMCG sector. While the BSE FMCG index saw only a slight uptick of 0.1%, some notable gainers included Emami (+1.9%) and Britannia (+1.5%). On the other hand, Nestle and Shree Renuka Sugars were among the top losers.
Meanwhile, the broader market indices also posted gains. The BSE Sensex rose by 0.5% to 76,419.3, while the NSE Nifty climbed to 23,269.6, reflecting positive investor sentiment across sectors.
Conclusion
Tata Consumer Products’ stock has experienced a strong rally due to Goldman Sachs’ optimistic outlook, which includes higher earnings expectations, price hikes, and strategic growth initiatives. With the company’s continued focus on innovation and expansion, analysts remain confident about its long-term potential in the FMCG sector.