Morgan Stanley has reiterated its Overweight rating on Tata Consumer Products Ltd (TCPL) with a 17% upside potential, according to reports from ET Now. The brokerage has revised its performance assessment while maintaining medium-term targets of double-digit revenue growth and faster profit expansion for the company. The investment bank projects mid-to-high single-digit revenue growth for the tea and salt businesses, while expecting the growth businesses to target 30% growth. As per ET Now, Morgan Stanley maintains its target price at ₹1,351 for the stock, reflecting continued confidence in the company's growth prospects.
TCPL delivered robust financial results for the March quarter of FY26, as reported by ET Now. The company reported a 21.6% increase in consolidated net profit to ₹424.02 crore, driven by volume growth from domestic business. Revenue from operations rose by 18% to ₹5,433.62 crore compared to ₹4,608.22 crore in the year-ago period. Total expenses increased 15.9% to ₹4,844.81 crore, while total income, including other income, grew 17.6% to ₹5,486.18 crore. The company's branded business increased 14.9% to ₹4,746 crore from ₹4,130.4 crore in the corresponding quarter last fiscal.
According to ET Now reports, TCPL's growth businesses showed mixed performance in FY26. Capital Foods and Organic India growth was softer due to weak exports, though management remains confident of achieving 30% growth going forward. In contrast, Sampann growth is accelerating at 40-69% in recent quarters, driven by dry fruits and cold pressed oils. The company's branded businesses include tea, coffee, water and various value-added products. As per ET Now, Morgan Stanley expects the growth businesses to target 30% growth despite current challenges in export markets.
As reported by ET Now, the stock closed at ₹1,154.75 on Tuesday, up 1.04% from the previous closing on BSE. However, the stock has declined over 3% in one week and fell over 5% in two weeks. The brokerage expects tea commodity prices to remain benign with an overall balanced commodity basket outlook. This positive commodity outlook supports the company's growth prospects in the competitive tea and salt markets, with Morgan Stanley maintaining its target price at ₹1,351 reflecting confidence in the commodity environment.
