NSEI:TATAGLOBAL

Stock Analysis Report

Executive Summary

Tata Consumer Products Limited, together with its subsidiaries, produces and sells tea, coffee, and water worldwide.


Snowflake Analysis

Flawless balance sheet with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Tata Consumer Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TATAGLOBAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.4%

TATAGLOBAL

14.8%

IN Food

8.9%

IN Market


1 Year Return

39.1%

TATAGLOBAL

-3.8%

IN Food

-30.6%

IN Market

Return vs Industry: TATAGLOBAL exceeded the Indian Food industry which returned -3.2% over the past year.

Return vs Market: TATAGLOBAL exceeded the Indian Market which returned -29.3% over the past year.


Shareholder returns

TATAGLOBALIndustryMarket
7 Day18.4%14.8%8.9%
30 Day-14.8%-13.9%-24.8%
90 Day-9.0%-12.3%-29.4%
1 Year40.7%39.1%-2.4%-3.8%-29.2%-30.6%
3 Year100.9%94.1%43.8%39.4%-17.0%-21.5%
5 Year108.7%95.1%84.2%75.2%-5.4%-10.4%

Price Volatility Vs. Market

How volatile is Tata Consumer Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tata Consumer Products undervalued compared to its fair value and its price relative to the market?

45.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TATAGLOBAL (₹281.4) is trading above our estimate of fair value (₹214.56)

Significantly Below Fair Value: TATAGLOBAL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TATAGLOBAL is poor value based on its PE Ratio (43.7x) compared to the Food industry average (10.3x).

PE vs Market: TATAGLOBAL is poor value based on its PE Ratio (43.7x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: TATAGLOBAL is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: TATAGLOBAL is overvalued based on its PB Ratio (2.4x) compared to the IN Food industry average (0.7x).


Next Steps

Future Growth

How is Tata Consumer Products forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

40.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TATAGLOBAL's forecast earnings growth (40% per year) is above the savings rate (6.5%).

Earnings vs Market: TATAGLOBAL's earnings (40% per year) are forecast to grow faster than the Indian market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TATAGLOBAL's revenue (21% per year) is forecast to grow faster than the Indian market (8.9% per year).

High Growth Revenue: TATAGLOBAL's revenue (21% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TATAGLOBAL's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Tata Consumer Products performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TATAGLOBAL has high quality earnings.

Growing Profit Margin: TATAGLOBAL's current net profit margins (5.4%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: TATAGLOBAL's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: TATAGLOBAL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TATAGLOBAL had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Food industry average (20.6%).


Return on Equity

High ROE: TATAGLOBAL's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Tata Consumer Products's financial position?


Financial Position Analysis

Short Term Liabilities: TATAGLOBAL's short term assets (₹46.4B) exceed its short term liabilities (₹16.9B).

Long Term Liabilities: TATAGLOBAL's short term assets (₹46.4B) exceed its long term liabilities (₹13.8B).


Debt to Equity History and Analysis

Debt Level: TATAGLOBAL's debt to equity ratio (14.7%) is considered satisfactory.

Reducing Debt: TATAGLOBAL's debt to equity ratio has reduced from 22.3% to 14.7% over the past 5 years.

Debt Coverage: TATAGLOBAL's debt is well covered by operating cash flow (46.8%).

Interest Coverage: TATAGLOBAL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TATAGLOBAL has a high level of physical assets or inventory.

Debt Coverage by Assets: TATAGLOBAL's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

What is Tata Consumer Products's current dividend yield, its reliability and sustainability?

0.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TATAGLOBAL's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: TATAGLOBAL's dividend (0.89%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

Stable Dividend: TATAGLOBAL's dividends per share have been stable in the past 10 years.

Growing Dividend: TATAGLOBAL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.8%), TATAGLOBAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TATAGLOBAL's dividends in 3 years are forecast to be well covered by earnings (42.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Ajoy Misra (62yo)

5.83s

Tenure

₹38,851,000

Compensation

Mr. Ajoy Kumar Misra, B.E. (Hons.), Civil, MBA has been Managing Director of Tata Consumer Products Limited(also known as Tata Global Beverages Limited) since April 1, 2014 and has been its Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Ajoy's total compensation ($USD515.45K) is about average for companies of similar size in the Indian market ($USD651.61K).

Compensation vs Earnings: Ajoy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ajoy Misra
MD, CEO & Executive Director5.83yrs₹38.85mno data
L. Kumar
Group CFO & Executive Director6.83yrs₹35.65mno data
Neelabja Chakrabarty
VP, Company Secretary & Compliance Officer1.58yrs₹12.84mno data
John Burdett
Global Operations Director3.17yrsno datano data
Ajit Kumar
Chief Operating Officer0.25yrno datano data
S. Roychaudhuri
Chief Information Officer and Director of Application Support & Development - Asia Regionsno data₹3.97mno data
Deepika Srivastava
Manager of Legal & Secretarialno datano datano data
Amit Chincholikar
Global Chief Human Resources Officer2.17yrsno datano data
Sachin Vyas
Head of Rural Business10.83yrs₹2.62mno data
John Mathai
Chief Internal Auditorno data₹4.89mno data

2.7yrs

Average Tenure

62yo

Average Age

Experienced Management: TATAGLOBAL's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ajoy Misra
MD, CEO & Executive Director5.83yrs₹38.85mno data
L. Kumar
Group CFO & Executive Director6.83yrs₹35.65mno data
Sankaran Santhanakrishnan
Independent Director6.83yrs₹5.45mno data
Bharat Puri
Independent Director0.83yrno datano data
Shikha Sharma
Independent Director0.83yrno data0.0079% 14.7m
Natarajan Chandrasekaran
Chairman of the Board2.67yrs₹220.00k0.016% 29.5m
Harish Bhat
Non-Executive & Non-Independent Director5.83yrs₹420.00kno data
Siraj Chaudhry
Independent Non-Executive Director2.67yrs₹1.95mno data

4.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: TATAGLOBAL's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TATAGLOBAL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tata Consumer Products Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tata Consumer Products Limited
  • Ticker: TATAGLOBAL
  • Exchange: NSEI
  • Founded: 1962
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹186.089b
  • Shares outstanding: 631.13m
  • Website: https://www.tataconsumer.com

Number of Employees


Location

  • Tata Consumer Products Limited
  • 11/13, Botawala Building
  • 1st Floor
  • Mumbai
  • Maharashtra
  • 400001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500800BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1998
TATAGLOBALNSEI (National Stock Exchange of India)YesEquity SharesININROct 1998
TTAZ.FOTCPK (Pink Sheets LLC)GDS EACH REPR 1 INR10(REG'S)USUSDMar 2000
TGBLLSE (London Stock Exchange)GDS EACH REPR 1 INR10(REG'S)GBUSDMar 2000
TTGLBBDL (Bourse de Luxembourg)GDS EACH REPR 1 INR10(REG'S)LUUSDMar 2000
TGBLLBATS-CHIXE (BATS 'Chi-X Europe')GDS EACH REPR 1 INR10(REG'S)GBUSDMar 2000

Biography

Tata Consumer Products Limited, together with its subsidiaries, produces and sells tea, coffee, and water worldwide. It engages in the processing and blending of tea, including the manufacture of instant tea. The company offers its products primarily under the Tata Tea, Tata Coffee Grand, Tata Water Plus, Tata Gluco+, Tetley, Teapigs, Jemca, Vitax, Laager, Good Earth, Eight O’Clock Coffee, Himalayan, Grand Coffee, Map Coffee, and Joekels brands. The company was formerly known as Tata Global Beverages Limited and changed its name to Tata Consumer Products Limited in February 2020. Tata Consumer Products Limited was incorporated in 1962 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:29
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.