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Tata Consumer Products Ltd Stock Analysis

Large Cap
Evaluated by 5975 users | BSE: 500800 | NSE: TATACONSUM |
Consumer Food

Tata Consumer Products (TCPL) is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. It was formed after a de-merger of the consumer products business of Tata Chemicals Limited into Tata...

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 22.7% 36% 23.6% 51.9%
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 34.71%
Institutions 39.30%
Non-Institutions 25.97%
Pledged *3.993.993.993.993.993.992.732.712.712.71
* 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 36% 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 18.7% annually over the past ten years.

Tata Consumer Products (TCPL) is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. It was formed after a de-merger of the consumer products business of Tata Chemicals Limited into Tata Global Beverages Limited, under a Scheme of Arrangement which was sanctioned by the Tribunal in January 2020, the Scheme is operational from February 7, 2020.

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Tata Consumer Products (TCPL) is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. It was formed after a de-merger of the consumer products business of Tata Chemicals Limited into Tata Global Beverages Limited, under a Scheme of Arrangement which was sanctioned by the Tribunal in January 2020, the Scheme is operational from February 7, 2020.

The Company’s portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-eat offerings. Tata Consumer Products is the 2nd largest branded tea company in the world and many servings of its beverage brands are consumed everyday across the globe. Its key beverage brands include Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand and Himalayan Natural Mineral Water.

Its foods portfolio includes brands such as Tata Salt and Tata Sampann. In India, Tata Consumer Products has a reach of many households, giving it an unparalleled ability to leverage the Tata brand in consumer products. The formation of TCPL marks a new strategic direction, an accelerated expansion into India’s Fast-Moving Consumer Goods (FMCG) market, while maintaining a leading and strategic presence in the International beverages market.

Business area of the company

The company is a focused consumer products company uniting the food and beverage interests of the Tata Group under one umbrella.

Products

  • Tea
  • Coffee
  • Water
  • Salt
  • Pulses
  • Spices
  • Ready-to-eat offerings

Awards

Beverages

  • Tata Tea Premium awarded the most promising brand by Economic Times.
  • Tata Tea Premium featured among Most Trusted Brand in the Hot Beverages category by Brand Equity.
  • Big Bang Awards - Gold for Branded Content - Tata Tea Premium and Bronze for Integrated Campaign - Tata Tea Chakra Gold.
  • ABP Brand Excellence (FMCG Category) - Tata Tea Gold, DilKiSuno campaign.
  • Digital Awards & Summit DOD 2019 Gold award for Best Digital Campaign for a Food and Beverages Enterprise - Tata Tea, Kanan Devan for Smart Shelf shopper activation.
  • ET Now, Stars of the Industry Award for ‘Brand Revitalization’ category - Tata Tea Chakra Gold (Women’s Day, Mother’s Day campaigns) and ‘Marketing campaign of the year’ - Tata Tea Gold DilKiSuno campaign.
  • Early Riser’s ‘All Hail the Early Risers’ campaign was selected to feature in the prestigious 2020 Hermes Creative Awards Spotlight.
  • 2020 American Package Design Award by Graphic Design USA for Early Riser Coffee packaging and Good Earth Ayurveda packaging.
  • Tetley Canada voted Brandspark International Most Trusted Tea Brand after a survey of over 18,000 Canadians.
  • Tetley Canada won the Readers Digest most trusted tea brand based on a survey of 4,000 Canadians, for the 6th year in a row.
  • Tetley Super Teas in Canada received a 2019 Family Rated Reviewers Award.
  • Tata Cha won the prestigious ‘Tea Café of the Year’ organized by the 4th Annual Restaurant India Awards - South India Edition 2019.
  • Teapigs secured 18 more Great Taste Awards this year, bringing the total number of these awards to 114
    Six blends in Tetley UK picked up Great Taste Awards.
  • Tetley retained its ‘Consumers Choice’ Award in Portugal in both the Hot Tea and RTD Tea categories for the 5th consecutive year.
  • Joekels was awarded Best Own Brand Supplier 2019 by one of South Africa’s top retailers, Pick-n-Pay

Foods

  • Received first bronze EFFIE for the effectiveness of the the Sawaal Kijiye Apne Namak Se (Question Your Salt) campaign.
  • Won four EMVIES, of which three were for the ‘Missing I’ campaign and one for the Pandharpur activation.
  • Won the ‘Blue Elephant Award’ for the ‘Salt Art’ video campaign.
  • Tata Nx Zero Sugar was awarded Best of Ayush and Natural Product in the Sweetener category.
  • Won a Silver for the ‘Missing I’ campaign at the Maddies.
  • ‘Missing I’ also picked up a Gold in the ‘Cross Media’ category and a Bronze in the ‘Cross Mobile Integration’ category at the Smarties awards.

Milestones

  • 1979-80: New Salt Works Developed
  • 1983: Tata Salt, India's first iodised, vacuum evaporated, branded salt launched.
  • 1985: Tata Tea introduces the revolutionary ‘POLY PACK’ which helps seal its presence in India.
  • 1991: Tata Tea enters the Business of Brands.
  • 1993: Signs joint venture with Allied-Lyons PLC to establish Tata Tetley.
  • 2000: Acquires Tetley Group Limited
  • 2003: Tata Salt ranked No. 1 Food brand in Brand Equity Survey of India's most trusted brands.
  • 2003: Mithapur becomes the first industrial township to be awarded the ISO 14001 certificate.
  • 2005: Acquires GOOD EARTH, a famous tea brand in USA.
  • 2006: Acquires 33% share in JOEKELS TEA, one of the largest selling tea brands in South Africa.
  • 2006: Acquires EIGHT O’CLOCK, a popular coffee brand in USA.
  • 2007: Acquires VITAX, the well-known Polish tea brand.
  • 2007: Invests in Mount Everest Mineral Water (MEMW), which owns HIMALAYAN WATER.
  • 2009: Acquires GRAND, a coffee brand in Russia
  • 2009: Tata Tea integrates beverage brands.
  • 2010: Announces Tata Global Beverages Limited - The Corporate Brand.
  • 2011: Increases stake in JOEKELS TEA and Becomes a subsidiary company.
  • 2011: Develops Nourishco through a joint venture with PepsiCo India.
  • 2012: Eight O’Clock Coffee signs agreement with Green Mountain Coffee Roasters Inc.
  • 2012: Signs joint venture with STARBUCKS.
  • 2014: Acquires MAP COFFEE, Australia’s famous coffee brand.
  • 2015: TATA SAMPANN launched with the aim to provide everyday nourishing foods.
  • 2016: The first Indian coffee microlot TATA NULLORE ESTATE, features in Starbucks Reserve Stores in Seattle, USA.
  • 2017: Enters out-of-home with the launch of TATA CHA PILOT Store
  • 2019: Tata Chemicals consumer products business proposed to be MERGED WITH TGB.
  • 2020: TATA CONSUMER PRODUCTS is formed.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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