This large cap stock surged nearly 4.3% in the afternoon of Wednesday’s trading session after the rumours about buying a 51% stake in Haldiram’s surfaced in the market.
Share price of Tata Consumer closed at Rs. 878.90 per piece. The stock gained 4.3% to reach its intra- day high of Rs. 883 levels, 0.1% lower than its 52- week high of Rs. 883.95 levels. The stock has given a return of 17.46% in the last six months and 58.26% in the last three years.
During the market hours, there were talks of Tata Consumers buying a minimum of 51% stake in Haldiram’s which has over 31% market share in the traditional snacks segment in India. Haldiram’s current valuation stands at $10 billion.
However, CNBC TV Report mentions that Tata Consumers Products which is known for its tea manufacturing and selling all around the world has denied the reports and claims to have no intention of acquiring snacks giant Haldiram’s as of now. Haldiram’s have refused to comment on the same.
The company has a market capitalization of Rs. 78,751 crore. According to its recent financials, the company saw an increase in its revenue for 3.3% from Rs. 3618.73 crore in Q4FY23 to Rs. 3741.21 crore in Q1FY24. Its net profit rose 17.8% from Rs. 268.59 crore in Q4FY23 to Rs. 316.59 crore in Q1FY24. It has maintained an ROCE of 9.93%. The company has a low debt to equity ratio of 0.07.
Tata Consumer Products Limited is a food and beverages company based in India. It is a part of the Tata Group conglomerate established in the year of 1962. The company is known to be the second largest manufacturer and seller of tea and tea products globally. The company has three major products at the moment which includes Tetley, Tata Salt and Tata Tea.
Written by Bhumika Khandelwal
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