Motilal Oswal has issued a buy rating on Tata Consumer Products with a target price of ₹1,500 in its research report dated July 25, 2026. According to the brokerage's analysis, the recommendation is based on a sum-of-the-parts (SoTP) valuation methodology, indicating confidence in the company's long-term prospects.
Tata Consumer Products delivered impressive financial results in the first quarter of FY27, with EBIT growth of approximately 27% year-on-year. As reported by Motilal Oswal, the Indian branded business segment led this growth with a robust 36% YoY EBIT increase, while the International business contributed with around 13% YoY growth. However, the non-branded business faced challenges with a 25% decline in EBIT, primarily attributed to a sharp fall in global coffee prices.
Motilal Oswal expects Tata Consumer Products to achieve significant growth across key financial metrics during the FY26-28 period. The brokerage projects the company will clock a CAGR of 10% in revenue, 16% in EBITDA, and 21% in PAT during this timeframe. These projections reflect confidence in the company's ability to maintain its growth trajectory across all business segments.
The positive investment thesis is supported by Motilal Oswal's expectation that Tata Consumer Products will continue to demonstrate strong operational performance. The brokerage's SoTP-based target price of ₹1,500 suggests significant upside potential from current levels, indicating confidence in the company's ability to execute its growth strategy and capitalize on market opportunities in the consumer products sector.
