Investors in Tata Consumer Products Limited (NSE:TATACONSUM) had a good week, as its shares rose 3.0% to close at ₹1,000 following the release of its second-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹57b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.5% to hit ₹4.74 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tata Consumer Products after the latest results.
Taking into account the latest results, the consensus forecast from Tata Consumer Products' 27 analysts is for revenues of ₹228.9b in 2027. This reflects a credible 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 14% to ₹19.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹226.7b and earnings per share (EPS) of ₹19.67 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Tata Consumer Products
With no major changes to earnings forecasts, the consensus price target fell 6.7% to ₹1,224, suggesting that the analysts might have previously been hoping for an earnings upgrade. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Tata Consumer Products, with the most bullish analyst valuing it at ₹1,450 and the most bearish at ₹1,050 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Tata Consumer Products shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. It's clear that while Tata Consumer Products' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Tata Consumer Products going out to 2029, and you can see them free on our platform here.
You can also see our analysis of Tata Consumer Products' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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