Why is Tata Consumer falling/rising?

Aug 07 2025 09:58 PM IST
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As of 07-Aug, Tata Consumer Products Ltd is priced at 1,052.85, showing a slight decrease and a trend reversal after two days of decline. Despite a year-to-date gain of 15.07%, the stock has underperformed recently, facing challenges such as a low long-term growth outlook and weak financial metrics.
As of 07-Aug, Tata Consumer Products Ltd is currently priced at 1,052.85, reflecting a slight decrease of 0.2, or 0.02%. The stock has shown a trend reversal, gaining after two consecutive days of decline, and has outperformed its sector by 0.31% today. However, over the past week, the stock has decreased by 1.86%, and it has also underperformed in the last month with a decline of 4.48%. Despite a year-to-date gain of 15.07%, the stock has faced challenges, including a poor long-term growth outlook with an annual operating profit growth rate of only 9.06% over the last five years. The company's low debt-to-equity ratio and high institutional holdings of 44% suggest some stability, but the stock's valuation appears expensive with a price-to-book value of 5.2, contributing to its recent price movement.

In the broader market context, Tata Consumer's short-term performance has been weaker compared to the benchmark Sensex, which has only declined by 0.69% over the same week. The stock's performance has been below par, generating a return of -12.23% over the past year, while the Sensex has increased by 1.45% in that timeframe. This underperformance, coupled with flat results reported in June and a low return on capital employed (ROCE) of 9.25%, indicates that the stock is struggling to attract investor confidence despite some positive indicators like rising delivery volumes. Overall, the combination of weak financial metrics and market performance suggests that Tata Consumer is facing significant challenges that are impacting its stock price negatively.
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