New businesses to boost growth momentum of Tata Consumer Products

Brokerages favour the stock, citing promising growth prospects and justified rich valuations

The stock of fast-moving consumer goods major Tata Consumer Products has been reaching new all-time highs on better-than-expected results for the July-September quarter (second quarter, or Q2), strong growth in the food business, and margin gains in the beverage/international business. Most brokerages are positive on the stock, given growth prospects, and believe that rich valuations are justified.

The near-term trigger has been the robust operational performance in Q2. Consolidated sales, up 11 per cent over the year-ago quarter at Rs 3,733 crore, were broadly in line with brokerage estimates.

Growth was led by the India food business, which posted a