You are here: Home » Markets » News
Business Standard

Tata Consumer hits record high, crosses Rs 53,000-crore in market-cap

In the past two months, the company's share price has surged 46 per cent

Buzzing stocks | Tata Beverages | Markets

SI Reporter  |  Mumbai 

tata global beverages
Tata Consumer Products is the second-largest branded tea company in the world

Shares of Tata Consumer Products were trading higher for the third straight day, up 5.5 per cent at Rs 580 on the BSE on Thursday in an otherwise subdued market. The stock of the Tata Group tea & coffee company hit a fresh record high in today's session after surpassing its previous high of Rs 561, touched on August 26, 2020.

In the last three days, the stock has gained 9 per cent, as compared to 1 per cent rise in the S&P BSE Sensex. In the past two months, the company's share price has surged 46 per cent, against 8 per cent gain in the benchmark index.

A sharp rise in the stock price has seen the market capitalisation of Tata Consumer cross Rs 53,000 crore level. At 11:58 am, the company’s market-capitalisation stood at Rs 53,468 crore, BSE data shows. Currently, Tata Consumer stood ahead of its other group companies – Tata Steel (Rs 50,253 crore) and Tata Motors (Rs 46,767 crore), as per the data.

For the April-June quarter (Q1FY21), Tata Consumer’s consolidated revenue from operations grew by 13 per cent (11 per cent in constant currency) as compared to corresponding quarter of the previous year led by volume and value growth in branded businesses both in India and International.

Ebitda (earnings before interest, taxes, depreciation, and amortization) was higher by 37 per cent to Rs 486 crore, mainly on account of higher revenue and lower level of expenditure including commodity costs. Operating margins expanded by 312 bps with gross margins expansion & savings in marketing, employee & overhead spends

Tata Consumer Products is the second-largest branded tea company in the world. 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.

Analysts at ICICI Securities believe the entire product portfolio has benefited from increased in-home consumption across countries. The highlight of the quarter has been market share gains in India tea business with 8 per cent sales growth whereas category saw 5.4 per cent decline, robust 50 per cent sales growth in pulses & spices, market share gains in EOC (US coffee) with 26 per cent sales growth.

The brokerage firm believes the strong growth throughout quarter has been a result of consumption shift from unbranded to branded in tea, pulses & spices & better availability of the company’s brand at e-com channel (specific EOC in US).

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, September 03 2020. 12:00 IST