Sharp rise in tea prices, impacted Tata Consumer performance in the near term, but long term trajectory is attractive with presence in growth segments of the FMCG industry and steady value being created in JV with Starbucks

SBI on a very solid wicket with most legacy NPAs behind it and credit growth to improve once lockdowns are relaxed; lower credit costs should improve return ratios
August 16, 2021
Team Lease poised to do better post Covid; formalization of labour markets a long term positive trend; good demand emanating from tech companies
August 16, 2021

Tata Consumer Products, the food and beverage company of the Tata Group, is home to key brands such as Tata Tea, Tetley, Tata Salt and Tata Sampann. With a combined reach of over 200 million households in India, it has an unparalleled ability to leverage the Tata brand in consumer products. It is this potential which the company intends to ride on to introduce new products and enter new FMCG categories. It is also noteworthy that in many of the present categories, the penetration levels is low and there is scope for premiumization. Acquisitions of products and brands will be actively pursued. We have a neutral weight rating despite good long term prospects due to soft near term performance due to rising tea prices. A large portion of revenues from developed markets which have flat consumption trajectory and that is a negative but value is being created in subsidiaries viz. Tata Starbucks and NourishCo- 11-08-2021 Price: 765.30 Rating: Neutral Weight Recommendation : Hold

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