Sunday, June 14, 2020

Tata Consumer Products Ltd – A Growth Stock


Tata Consumer Products Ltd  closes   at  371.25  with  a  Fall    of   -1.20     on    12-June- 2020   with formation of  a  Small Green  Candle    on Daily  Price Chart.
About the Company : Tata Global Beverages and its subsidiaries (together referred to as the group) and the groups associates and joint ventures are engaged in the trading, production and distribution of Tea, Coffee and Water. The group has branded beverage business operations mainly in India, Europe, US, Canada and Australia, plantation business in India and extraction business in India and the US.
The company is has  post  Net Sales  of 9637.40 Cr & Net Profit   of 459.80 Cr in FY2020 and  and  expected to Post Net Sales of 10072.20 Cr & Net Profit of 759.60 Cr in FY2021 & Net Sales of 11075.30 Cr & Net Profit of 936.50 Cr in FY2022.
Valuations  : The Company is now Trading at X 4.4   of its Value. We have valued the company with its full  Financial  year 2020 earnings  ( PAT ), which is now almost ~340 % Premium  to its value & X 2.61  of its FY2021 earning with a Premium  of ~ 161%  and X 2.12    of its FY2022  earnings with a Premium   of ~112%  .
The EPS for FY20 is 4.99 Per Share, which will improve to 8.26 in FY21 & 10.20 in
FY2022.
Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.30 ( A growth stock  has always  less margin of safety ) .
Whats the Growth Story : # Digital transformation to be a key driver for growth



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