Tata Consumer becomes 6th Tata Group stock to surpass ₹1 lakh crore market cap
Tata Consumer Products has now joined the ranks of listed Tata Group companies with a market capitalization exceeding ₹1 lakh crore, making it the sixth firm to achieve this milestone. During Friday’s trading session, Tata Consumer stock recorded a 3.8% increase, propelling it past this significant market capitalization threshold.
Besides Tata Consumer, several other Tata Group companies, including Tata Consultancy Services (TCS), Titan, Tata Motors, Tata Steel, and Trent, have surpassed the market capitalization threshold of ₹1 lakh crore. Notably, Trent achieved this milestone in December, becoming the fifth Tata Group listed company to do so.
As of 12:10 pm, Tata Consumer Products’ market capitalization reached ₹1,00,203 crore. TCS leads the pack with a market cap of ₹13.91 lakh crore, trailed by Titan ( ₹3.26 lakh crore), Tata Motors ( ₹2.63 lakh crore), and Tata Steel ( ₹1.71 lakh crore).
The consumer goods stock witnessed a nearly 4% surge, reaching the day’s high of ₹1,081.8, following the announcement that Tata Coffee (TCL) and Tata Consumer Products (TCPL) had set January 15, 2024, as the record date for their merger, scheduled to take effect from January 1.
This merger, encompassing all Tata Coffee businesses merging with Tata Consumer Products, is part of a strategic reorganization plan aimed at unlocking synergies and operational efficiencies within the company.
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“The Scheme Implementation Committee of the Board of TCPL and the respective Board of Directors of TCL and TBFL have acknowledged that the conditions under Clause 29 of the Scheme, including the filing of the certified copies of the order with the Registrar of Companies in form INC-28, are duly fulfilled,” the company said in an exchange filing.
The designated date for the company to identify TCL shareholders eligible to receive Tata Consumer Products shares is January 15, 2024.
Tata Consumer shares have yielded returns exceeding 40% year-to-date, with a nearly 25% surge in the past three months. According to Trendlyne, the stock is trading above both its 50-day and 200-day simple moving averages (SMAs).
Demonstrating remarkable strength, it has maintained an undefeated streak over the last eight trading sessions, registering a gain of almost 14% during this period. Trendlyne data indicates that the recent rally has pushed it into a strongly overbought zone, with the day’s RSI and MFI standing at 84.9 and 76.8, respectively.
In the second quarter of fiscal year 2024, Tata Consumer Products posted a 3% growth in its consolidated net profit, reaching ₹338 crore compared to ₹328 crore in the corresponding period last year.
The revenue from operations during this reporting quarter witnessed an 11% year-on-year increase, rising to ₹3,734 crore from ₹3,363 crore in the same quarter last year. The consolidated EBITDA for the quarter stood at ₹569 crore, marking a substantial 30% year-on-year increase.
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Published: 29 Dec 2023, 04:32 PM IST
