Tata Consumer s trailing price-to-earnings ratio of 54 times is in-line with industry average, despite having lower pace of sales and profit growth as well as single-digit return on equity
The Tata firm is also said to be picking a controlling stake in Organic India for a Rs 1,800 crore valuation from FabIndia. Fabindia is backed by Premji Invest and Lighthouse Capital, and owns over 40% stake in Organic India, based in Lucknow.
Stocks that were in focus include names like Sobha Ltd which was up more than 16% to hit a fresh record high, Torrent Power gained more than 7% and Tata Consumer Products closed with gains of over 3% to hit a fresh record high.
Short-term traders can look to buy the stock now or marginal dips for a possible target around Rs 1,050 levels in the next 2-3 weeks, suggest experts. After creating a strong base in March 2023, the stock has been making higher lows for the past nine months. The momentum pushed the stock to a fresh record high last week.