Tata Consumer Products, one of the biggest names in the FMCG business in India, is trading with deep cuts at the bourse. The company shares dipped by over 1 per cent, after Kotak Institutional Equities cut its target for the company.
FMCG Brands In Focus
Tata Consumer Products was not alone, as the broking and rating agency brought its targets down for other FMCG companies as well.
Kotak cut targets for Colgate-Palmolive, Nestlé and Hindustan Unilever as well.
Tata Consumer Products has had a relatively underwhelming response to this reduction in target, as the company shares, as Nestle India Ltd, ITC, and Hindustan Unilever Ltd were all trading in green with minor gains.
Tata Consumer Products was not alone, as the broking and rating agency brought its targets down for other FMCG companies as well. | Unsplash
Meanwhile, Godrej Consumer Products Limited, like Tata Consumer Products shares, was also trading with cuts.
According to Kotak the persistent weakness in urban consumption and a decline in demand could plague FMCG growth for the next few quarters. In addition factors like Inflation could also eat into the margins, thereby slowing their expansion further.
When we look particularly at Tata Consumer Products, the Mumbai-based company saw its shares drop with a greater proportion of dip. This is because it also has the biggest revision in its figures.
Kotak cuts Tata Consumer Products target by 2-4 per cent, with it reduced to Rs 1,025.
The shares of TCP started the day at Rs 975.00 per share, higher than the previous day's closing of Rs 970.70.
Tata Consumer Products Ltd Shares Drop
This positive start to the day did not last for long, as the company shares dipped thereafter. The decline even went to as much as 1.2 per cent. This decline was truncated, while continuing to trade in red, as the day progressed.
At the time of writing, the decline in the company shares amounted to 1.00 per cent or Rs 9.70 per piece. This took the overall value of the company shares to Rs 961.00 per piece.
