A Tata Group stock clocked strong gains of almost 7% on the BSE on Tuesday, 27 October, snapping its three-day losing streak, boosted by the company’s healthy September quarter (Q2FY27) results.
Tata Consumer Products, Tata Group’s consumer products company, on 26 October, reported a 14% YoY rise in its Q2FY27 revenue from operations to ₹5,661 crore.
Group net profit for the quarter rose 16% to ₹470 crore, while consolidated EBITDA for the quarter rose 18% to ₹794 crore.
Tata Consumer Products share price trend
The stock rose 6.66% to end at ₹999 on Tuesday. It hit a 52-week low of ₹916.60 in the previous session on 26 October. It reached a 52-week high of ₹1,282.65 on 12 May.
Year-to-date, the stock is down 15% compared to a 14% fall in the Sensex. On a monthly scale, it is up 5% so far in October, on course to end its two-month losing run.
Is Tata Consumer Products a stock to buy now?
Brokerage firms appear positive about the stock for the long term after the company’s Q2 results.
Equirus Securities has maintained a “long” view on the stock with a December 2027 target price of ₹1,173, citing the company’s ability to broaden its earnings base by scaling Growth Businesses alongside tea and salt.
“Management’s long-term aspiration of a 17-20% EBITDA margin for India offers a profitability reference. However, sustaining Growth Business momentum, converting stronger domestic execution in acquired businesses into overall growth, and reviving tea volumes remain key execution tests,” said Equirus Securities.
“The recent share-price correction offers a better entry point, although sector-wide de-rating has also prompted us to lower our target multiple,” Equirus Securities said.
Brokerage firm Systematix Shares and Stocks (India) has upgraded the stock to a buy, but cut the target price to ₹1,185 from ₹1,245 earlier.
The brokerage firm raised FY27E-FY29E revenue estimates by 2% and kept EPS estimates unchanged.
“We build FY26-FY29E revenue and EPS CAGR of 12% and 19%. We roll forward valuation to September-2028E EPS (from June-2028E) and value the stock on a P/E of 48 times, at a premium to its current one-year forward multiple to factor in the portfolio transformation,” said Systematix.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, Tata Consumer Products is currently trading below its major 50-, 100-, and 200-day double exponential moving averages (DEMA), indicating weakness in the prevailing price structure.
However, the Relative Strength Index (RSI) behaviour suggests that the stock could be kept on the watchlist for a potential reversal.
Patel said immediate support is near ₹950, while ₹1,020 is a crucial resistance level.
“A sustained breakout above ₹1,020 could indicate improving bullish momentum and trigger fresh buying opportunities, with an upside target of ₹1,100. Until the stock clears this resistance, caution is advisable, as the broader technical structure remains weak,” said Patel.
“Traders should monitor price action and RSI confirmation before initiating fresh positions. A decisive breakout above ₹1,020 would be the key trigger for a bullish outlook,” Patel said.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
