Why is Tata Consumer falling/rising?

Aug 12 2025 09:33 PM IST
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As of 12-Aug, Tata Consumer Products Ltd's stock price is 1,048.20, down 0.65%, with a short-term underperformance and declining investor participation. Despite low debt and high institutional holdings, concerns over long-term growth and profitability have led to a significant drop in its stock value.
As of 12-Aug, Tata Consumer Products Ltd is experiencing a decline in its stock price, currently at 1,048.20, reflecting a decrease of 6.85 points or 0.65%. The stock has underperformed in the short term, with a 1-week return of -1.48% compared to the Sensex's decline of -0.59%. Today's performance indicates that it has outperformed its sector by 0.4%, but the stock is trading below its 5-day, 20-day, 50-day, and 100-day moving averages, despite being higher than the 200-day moving average. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 32.15% against the 5-day average. The company maintains a low debt-to-equity ratio and high institutional holdings, which typically suggest stability; however, poor long-term growth and flat results in recent quarters have raised concerns among investors.

In the broader market context, Tata Consumer's recent performance contrasts with the benchmark, as it has shown a decline over the past month (-2.41%) while the Sensex has decreased by 2.75%. The stock's long-term performance has also been lackluster, generating a return of -10.70% over the past year, which is significantly below the benchmark's return of 0.74%. The company's operating profit growth has been modest at an annual rate of 9.06% over the last five years, and its valuation appears expensive with a price-to-book ratio of 5.2. This combination of below-par performance in both the near and long term, along with declining profitability, has contributed to the stock's recent downward movement.
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