Motilal Oswal Maintains 'Buy' on Tata Consumer Products, Sets Rs 1,450 Target

Motilal Oswal is bullish on Tata Consumer Products, initiating coverage with a 'Buy' rating and a price target of ₹1,450, suggesting an approximate 21% potential return. This positive outlook is supported by the company's Q2FY26 earnings, which showed an 8% year-on-year increase in Earnings Before Interest and Tax (EBIT). The performance was bolstered by the India Branded business, which saw a significant 47% YoY EBIT growth. Key product segments like tea and salt also demonstrated robust volume growth, with tea revenues up 12% (5% volume increase) and salt revenues up 16% (6% volume increase).

**Impact** This news is highly significant for investors as it provides a strong endorsement from a major brokerage firm, suggesting potential for significant stock appreciation. The expected margin improvement and sustained growth in key segments indicate healthy future profitability. The rating and target price serve as important benchmarks for investment decisions. Impact rating: 8/10

**Difficult Terms** * **Earnings Before Interest and Tax (EBIT)**: A measure of a company's operating profit, showing how much profit it has earned from its core business operations before accounting for interest expenses and income taxes. * **Fast-Moving Consumer Goods (FMCG)**: Products that are sold quickly and at relatively low cost. Examples include groceries, toiletries, and other household items. * **Year-on-Year (YoY)**: A comparison of financial data from one period with the same period in the previous year to assess performance trends. * **H2FY26**: Refers to the second half of the Indian financial year 2025-2026, typically covering the period from October 2025 to March 2026. * **Ready-to-Drink (RTD)**: Beverages that are packaged and ready for immediate consumption without any preparation required by the consumer.