Tata Consumer Products Ltd (TCPL) witnessed a sharp rise of 5.5% in its stock price, reaching an intraday high of ₹1,020 on January 31, 2025. This surge followed the company's Q3 FY25 earnings announcement, which, despite a slight dip in net profit, showcased strong revenue growth.
This performance reaffirmed investor confidence, particularly among those looking to buy shares online, as the FMCG giant continued to expand in both domestic and international markets.
Revenue growth amid profit decline
For the quarter ending December 31, 2024, Tata Consumer Products Ltd reported a consolidated revenue increase of 16.81% year-over-year (YoY), reaching ₹4,443.56 crore. However, its consolidated net profit fell by 6.5% YoY to ₹281.92 crore due to rising operational costs, particularly in the tea segment.
Analysts highlighted that despite profit pressures, the company’s topline growth remained resilient, reinforcing confidence among those seeking to buy shares online in FMCG stocks.
Strong performance in branded and international business
The company’s branded business, covering tea, coffee, water, and packaged foods, grew by 18.3%, contributing ₹4,026.15 crore in revenue. In India, branded business revenue climbed 19.31% to ₹2,833.68 crore, while the international segment saw a 15.95% increase.
This steady expansion across core segments signals continued demand, making TCPL an attractive choice for investors exploring opportunities to buy shares online in established consumer goods companies.
Expansion and innovation drive future growth
Tata Consumer Products' strategy of market expansion and innovation played a key role in its performance. The company’s ready-to-drink segment gained traction with new product launches, while Tata Starbucks, a joint venture with Starbucks Corporation, expanded to 473 stores across 74 cities.
The acquisition of Capital Foods and Organic India further strengthened its position in the packaged foods and health categories. These developments highlight why seasoned investors are keen to buy shares online in companies with strong growth potential.
Key financial metrics and market valuation
The company’s market capitalisation stood at ₹99,728 crore, with a stock price-to-earnings (P/E) ratio of 76.1. While the stock trades at five times its book value, analysts acknowledge its strong dividend payout of 63%, improved working capital efficiency and expanding market presence. These factors continue to attract investors looking to buy shares online in growth-oriented FMCG stocks.
Should you consider investing in Tata Consumer Products?
Tata Consumer Products’ consistent revenue growth, strategic acquisitions, and expansion efforts position it as a formidable player in the FMCG sector. As of January 31, 2025, at 11:31 AM, TCPL's stock was priced at ₹1,011, reflecting a 4.53% rise during the trading session.
While the stock's valuation remains on the higher side, its robust market presence and future growth potential make it a compelling choice for investors.
For android only