Tata Consumer Shares : An Insight into Their Market Dynamics

Tata Consumer shares

Tata Consumer Shares : Partnership and Share Performance

Tata Consumer Shares : Currently, Tata Consumer, which owns the UK tea company Tetley, has partnered with Starbucks in India. From a technical perspective, the counter’s 14-day Relative Strength Index (RSI) stands at 65.29. Any value below 30 is defined as oversold, while above 70 is considered overbought.

Recent Surge

Shares of Tata Consumer Products Limited climbed close to their annual high on Wednesday. The stock rose 4.40% to an intraday high of 883 rupees. At this price, it was only 0.10% away from its 52-week peak of 883.85 rupees, which was witnessed on 26th July. It finally closed at 879.90 rupees, up by 4.04%. This surge came following news that the Tata Group’s consumer unit is in talks to acquire a stake in Haldiram’s.

Stake in Haldiram’s

According to news agency Reuters, sources familiar with the developments stated that Tata Consumer is in negotiations to buy at least 51% stake in popular food manufacturer Haldiram’s, but it’s not easy with a valuation of 10 billion dollars. The news agency also noted that Haldiram’s is discussing the sale of a 10% stake with private equity firms, including Ben Capital.

The company clarified, “This article does not impact the company. We would like to add that the company continuously evaluates various strategic opportunities for the growth and expansion of the company’s business. We will make the appropriate disclosures in compliance with obligations under SEBI (LODR) Regulations, 2015, whenever such a requirement arises.”

Market Share in the Snack Sector

Euromonitor International reports suggest that in India’s 6.2 billion-dollar snack market, Haldiram’s holds approximately 13%. In comparison, Pepsi, famous for its Lay’s chips, also has about 13% market share in select segments.

Haldiram’s products, including snacks, are also sold in international markets like Singapore and the United States. The company operates nearly 150 restaurants offering local cuisine, sweets, and western dishes.

Tata Consumer Shares Technical Analysis

On the technical front, Tata Group’s counter was seen trading above its previous 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day Simple Moving Average (SMA). The 14-day RSI is at 65.29, indicating its current market position. The stock’s Price-to-Equity (P/E) ratio is 78.36, while the Price-to-Book (P/B) value is 6.16.

According to Trendline’s data, the analyst target price for the share is 932 rupees, suggesting a potential upside of 6%. Its one-year beta stands at 0.93, indicating lower volatility for the counter.

Market Closing

In the meantime, due to gains in consumer, pharma, and energy stocks, Indian equity benchmarks closed higher for the fourth straight session. The BSE Sensex, comprising 30 shares, closed 100 points or 0.15% higher at 65,881, while the broader NSE Nifty ended the session at 19,611, up by 36 points or 0.18%.

This in-depth look into “Tata Consumer Shares” provides readers with a comprehensive understanding of its current market dynamics and potential future growth.