Tata Consumer Products’ shares experienced a 3% decline to Rs 853.8 on Thursday, following the company’s denial of news reports suggesting discussions about acquiring a stake in Haldiram’s. Earlier, on September 6, Reuters had reported that Tata Consumer Products was in talks to acquire at least 51% of Haldiram’s but was hesitant due to the $10 billion valuation.
Despite this denial, Tata Consumer’s stock surged by over 4% in Wednesday’s session after the news of their interest in Haldiram’s. The company clarified in an exchange filing that while they are not currently in negotiations, they continually assess strategic opportunities for business growth and expansion.
As of 12:18 p.m., the stock was trading 2.5% lower at Rs 857 on BSE. However, it has shown an impressive year-to-date growth of over 12%, with a 20% gain in the past six months. In Q1 FY24, Tata Consumer Products reported a 22% YoY increase in profits, amounting to Rs 337.7 crore. The revenue also saw a notable 12.5% surge from Rs 3,326.8 crore in Q1FY23 to Rs 3,741.2 crore in the June quarter of FY24.
Furthermore, the EBITDA grew by 19% during Q1FY24 to Rs 547 crore. According to Trendlyne data, the stock’s target price is projected at Rs 932, indicating a 9% potential upside from the current market prices. The consensus recommendation from 24 analysts for the stock is a ‘Buy’. Technically, the stock’s day RSI (14) stands at 64.6, and the MACD is at -0.6, both of which suggest positive indicators for the stock.
