STRONG 85/100

fmcg · TATACONSUM

Tata Consumer Products

Tata Consumer Products: PE below historical average. NARROW LEADERSHIP regime. sector leading.

Price

₹1,117.9

Price 2026-07-06

5 day

+2.48%

Short-term move

1 month

-1.15%

Medium-term

Regime

NARROW LEADERSHIP

62% confidence

Market cap

₹111.3k Cr

inflow sector flow

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How does today's NARROW LEADERSHIP regime affect Tata Consumer Products (TATACONSUM) in the fmcg sector?

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Price chart

1,107

-1.18% over period

2025-06-021,007 – ₹1,2522026-07-02

About Tata Consumer Products

Nifty 50fmcg

Tata Consumer Products Limited, together with its subsidiaries, manufactures, distributes, and trades in food products in India, the United States, the United Kingdom, and internationally. It operates through Branded Business and Non Branded Business segments. The company provides tea, coffee, water, salt, pulses, spices, snacks, ready-to-eat packaged and processed food products, ready to cook, ready to drink beverages, breakfast cereals, sauces, instant masala noodles, meal solutions, staples, mini-meals, breakfast, chilli ginger garlic paste, cooking aids and condiments, dry fruits, floor and millets, honey, chutneys, and cold-pressed oils. It also offers health supplements; glucose and jelly drinks; juices; food; and out-of-home consumptions products. The company provides its products primarily under the Tata Tea, Tata Tea Premium, Tetley, 1868 by Tata Tea, Organic India, Tata Coffee Grand, Tata Coffee Gold, Tata Coffee Quick Filter, Sonnets by Tata Coffee, Tata Salt, Tata Sampann, Smith & Jones, Tata Soulfull, Himalayan honey and preserves, Ching's Secret, Tata Simply Better, Himalayan water, Tata Copper+, Tata Gluco+, Tata Coffee Grand Cold Coffee, Zip Zap, Tetley Ready-To-...

Packaged FoodsMumbai, India11,233 employeesWebsite →

At a Glance

ValuationPE 72.4 (43%ile of 7 quarterly points (limited history), range 60-82). Trading near median.
Sector Positionfmcg sector. Flow: inflow. is in the leaders group. Regime: NARROW LEADERSHIP (62%).
Fundamental Score85/100 (STRONG). 2 positive flags, 3 concerns.
Historical ContextRSI oversold bounces for this stock succeeded only 0% of the time (avg -8.7% over 14 days) — not a reliable pattern.
Revenue TrendRevenue growing at 1790.0% YoY. Strong revenue growth — 1790.0% YoY

RSI pattern warning

RSI oversold bounces for this stock succeeded only 0% of the time (avg -8.7% over 14 days) — not a reliable pattern.

52-week position

Trading at 87.2% of 52-week high

52W low ₹1,007.252W high ₹1,282.7

Technicals

RSI 14

46.1

Trend

downtrend

50 DMA

Below

200 DMA

Below

Key metrics

P/E ratio

72.4

43th pct · 7 quarterly points (limited history)

P/B

5.5

ROE

6.9%

Below-average profitability — 6.9% ROE

Market cap

₹111.3k Cr

Revenue growth

1790.0% YoY

Promoter

34.4%

52-week range

₹1,007.2 – ₹1,282.7

87.2% of high

RSI (14)

46.1

downtrend

vs 50 DMA

Below

DMA ₹1,149.35

Fundamental

85/100

STRONG

Trust

95/100

Verification

Coverage

100/100

HIGH

Quick Take

Tata Consumer Products scores 85/100 on fundamentals (strong). Tata Consumer Products: PE below historical average. NARROW LEADERSHIP regime. sector leading.

Fundamental Score: 85/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 6.8% broken into three drivers. Each shows how efficiently the company generates returns.

ROE6.8%=
7.4%Net Margin
×
0.6xTurnover
×
1.6xLeverage

ROE of 6.81% is modest margin-driven and stable. Net margin 7.4%, asset turnover 0.58x, leverage 1.6x.

What This Means

Net margin of 7.4% means the company keeps ₹7.4 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.58x means the company efficiently uses its assets to generate revenue. Leverage of 1.6x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

41.5%

Operating

11.7%

Net

7.4%

stable

Gross margin 41.5% → operating margin 11.7% → net margin 7.4%. Margins are stable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 16.2x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.0x is low — balance sheet has capacity.

Free Cash Flow

STRONG

FCF margin at 9.9% — moderate. Generating cash after investments.

Peer comparison

StockPrice5DP/EROERev growthMcap
HINDUNILVR

Hindustan Unilever

₹2,202+2.4%48.921.6%430%₹5.2L Cr
ITC

ITC Limited

₹288.25-0.8%17.529.3%-500%₹3.6L Cr
BRITANNIA

Britannia Industries

₹5,454.5+6.9%51.753.3%790%₹1.3L Cr
GODREJCP

Godrej Consumer Products

₹1,100.6+7.7%60.415.1%840%₹1.1L Cr
DABUR

Dabur India

₹449.75+5.5%42.516.2%730%₹80.4k Cr
COLPAL

Colgate-Palmolive India

₹2,079.6+4.0%42.781.6%910%₹56.5k Cr
GODFRYPHLP

Godfrey Phillips

₹2,143-2.3%21.826.6%1360%₹33.3k Cr
GILLETTE

Gillette India

₹7,772.5+2.8%47.966.4%320%₹25.6k Cr
TATACONSUM

Tata Consumer Products

₹1,117.9+0.5%72.46.9%1790%₹1.1L Cr

Tensions to watch

Promoter holding at 34.4% — neither distress selling nor aggressive buying

No strong insider signal. Watch for changes in promoter stake as a leading indicator.

Key Watchpoints

🟢

Breaks above ₹1174 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1062 (-5%)

Further downside risk

🟡

PE reverts to median of 72.4 (7 quarterly points (limited history))

Valuation normalization

🟢

Fmcg sector holding leadership position

Sector momentum continuing

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (17.8%) than equity (8.9%)
✅ High Earnings Quality: Cash flow covers earnings 1.6x — strong cash conversion

Risk Flags

⚠️ 3 Warning2 Positive5 total flags
⚠️Goodwill is 34% of total assets
Balance Sheet

Significant goodwill from acquisitions. Monitor for impairment risk.

⚠️64% of debt is short-term
Balance Sheet

High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.

⚠️Overall governance risk: 8/10
Governance

Elevated risk score. Review audit, board, and shareholder rights metrics.

Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

PEG ratio: 0.6x — attractive growth-adjusted valuation
Valuation

Growth available at reasonable price. Favourable risk-reward.

⚠️ 3 warning flags — monitor closely.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

revenue growth (1)margin pressure (1)capex expansion (1)debt reduction (2)management outlook (4)

50 articles scanned for fundamental themes

Facts

P/E Ratio
72.4MODERATE
P/B Ratio
5.5HIGH
ROE
694.0%HIGH
Market Cap
₹11133584.7L CrHIGH
From 52W High
87% of high
Promoter Holding
34.4%MODERATE
Institutional
34.4%
Sector Peers
10

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