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Tata Consumer Products Ltd. Stock Analysis

Large Cap
Evaluated by 5843 users | BSE: 500800 | NSE: TATACONSUM |
Consumer Food
Tata Global Beverages, earlier known as Tata Tea was set up in 1964 through a joint venture with UK-based James Finlay and the Tata Group for manufacturing tea and coffee. Currently Tata Tea and the UK-based Tetley group have the world’s second largest branded tea operations...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tata Consumer Products Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.69%10.52%10.14%12.09%11.84%9.27%8.1%11.48%9.07%7.39%
Value Creation Index -0.070.280.230.470.440.12-0.020.390.10-0.10
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,8112,0352,3262,6832,8852,9873,0643,2173,4305,690
Y-o-Y Gr. Rt.-12.4%14.3%15.3%7.5%3.6%2.6%5%6.6%65.9%
Adjusted EPS (Rs.) 2.744.074.075.285.374.284.397.236.145.95
Y-o-Y Gr. Rt.-48.5%0%29.7%1.7%-20.3%2.6%64.7%-15.1%-3.1%
Book Value per Share (Rs.) 32.935.3937.1441.2640.0854.1159.6266.4270.07117.49
Adjusted Net Profit 169251252327332270277456388549
Net Op. Cash Flow (Rs. Cr.) 30.8137-62.214850.213250719997.5745
Debt to Cash Flow from Ops 16.392.69-8.183.099.513.310.060.420.050.05
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tata Consumer Products Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.6%14.6%22.9%65.9%
Adjusted EPS 9%2.1%10.7%-3.1%
Book Value per Share 15.22425.467.7
Share Price 20.8% 29.5% 30.8% 76.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.1811.7811.1213.3513.089.17.6711.418.957.17
Operating Profit Margin (%) 8.511.8710.5910.5910.7212.0211.8815.712.7814.23
Net Profit Margin (%) 9.3412.3510.8212.1711.59.049.0414.1811.39.64
Debt to Equity 0.250.170.220.180.190.130.010.0200
Working Capital Days 316306219224302229145134139103
Cash Conversion Cycle 57687780839280636945
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 34.70%
Institutions 39.34%
Non-Institutions 25.95%
Pledged *3.993.993.993.993.993.993.992.712.712.71
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tata Consumer Products Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tata Consumer Products Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tata Consumer Products Ltd.'s performance infers:

Tata Consumer Products Ltd. earnings have grown by 2.1%, whereas share price has appreciated 29.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Tata Consumer Products Ltd. share prices over the last 10 years. Here is what we found out:

Tata Consumer Products Ltd. share price has appreciated 14.4% annually over the past ten years.

Tata Global Beverages, earlier known as Tata Tea was set up in 1964 through a joint venture with UK-based James Finlay and the Tata Group for manufacturing tea and coffee. Currently Tata Tea and the UK-based Tetley group have the world’s second largest branded tea operations with a presence in 40 countries.

The company has portfolio of five brands in the domestic market namely Tata

Tata Global Beverages, earlier known as Tata Tea was set up in 1964 through a joint venture with UK-based James Finlay and the Tata Group for manufacturing tea and coffee. Currently Tata Tea and the UK-based Tetley group have the world’s second largest branded tea operations with a presence in 40 countries.

The company has portfolio of five brands in the domestic market namely Tata Tea,Tetley, Kanan Devan, Chakra Gold  and Gemini.

It has distribution network of 38 C&F agents and 2500 stockists catering  over 1.7 million retails outlets. It has three subsidiaries namely Tata Tea Inc,Tata Coffee & Tata Tea (GB).

The company has its headquarters in Kolkata and owns 27 tea estates in states like Assam, West Bengal and Kerala.It has a 100% export unit for instant tea located in Munnar, Kerala.It 15,900 hectares of land under tea cultivation. Tata Tea produces 30 million kg of black tea annually.

Tetley offers customized products to each country ranging from black, green, fruit and herbal teas, iced ready-to-drink teas and an extensive range of exotic speciality tea. It caters to Australian, Middle East, West Asia, North Africa, Poland, Russia and Kazakhstan markets.Tetley contributes to two-third of the total turnover of Tata tea.

Tata Tea is also into strawberry preservation business. It offers vocational rehabilitation as well as an additional source of income to elder children.

Milestones and awards

Tata Tea won the Mother Teresa Commendation Award for Corporate Citizenship.

It received Golden Peacock Innovative Product & Service Award.

It received National Safety Council, Kerala Chapter Award (2001) for outstanding performance in Industrial Safety as Runner Up by achieving the lowest frequency rate of accidents in Gr. III(B) Engineering Industries.

In 2010 Tata Tea announces joint venture with PepsiCo for health drinks. The same year " Tata Global Beverages " corporate brand was announced.

In 2011- JV with Pepsi Co named Nourish Co. Acquires stake in The Rising Beverage Company LLC.

In 2012- Signed JV with Starbucks

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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