Tata Consumer Products market cap: Tata Consumer becomes 6th Tata stock to hit Rs 1 lakh crore milestone

Apart from Tata Consumer, Tata Consultancy Services (TCS), Titan, Tata Motors, Tata Steel, and Trent have crossed the market cap of Rs 1 lakh crore. Earlier in December, Trent had become the fifth listed company of the Tata Group to achieve this feat.

At 12:10 pm, Tata Consumer Products’ market cap stood at Rs 1,00,203 crore. TCS occupies the top spot with a market cap of Rs 13.91 lakh crore followed by Titan (Rs 3.26 lakh crore), Tata Motors (2.63 lakh crore) and Tata Steel (Rs 1.71 lakh crore).

The consumer goods stock jumped nearly 4% to the day’s high of Rs 1,081.8 after Tata Coffee (TCL) and Tata Consumer Products (TCPL) fixed January 15, 2024, as the record date for the merger. The proposed merger will come into effect from January 1.

The merger of all businesses of Tata Coffee with Tata Consumer Products was proposed as part of a reorganisation plan in line with the company’s plan of unlocking synergies and efficiencies.

“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 record date for the company to determine the shareholders of TCL who will be eligible to receive shares in Tata Consumer Products is January 15, 2024.Tata Consumer shares have delivered over 40% returns year-to-date, while it has surged nearly 25% in the last three months.

The stock is trading above its 50-day and 200-day simple moving averages (SMAs) according to Trendlyne. The counter has remained unbeaten over the past eight trading sessions and gained nearly 14% during this period. The rally has taken it into a strongly overbought zone with the day’s RSI and MFI at 84.9 and 76.8, Trendlyne data suggested.

In Q2 FY24, Tata Consumer Products reported a 3% growth in its consolidated net profit at Rs 338 crore, compared with Rs 328 crore in the year-ago period.

Its revenue from operations during the reporting second quarter jumped 11% year-on-year (YoY) to Rs 3,734 crore. The same was at Rs 3,363 crore in the last year quarter. Consolidated EBITDA for the quarter stood at Rs 569 crore, up 30% YoY.

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