Tata Consumer Products shares slump 13.9% as analysts spot 21% upside

Tata Consumer Products shares have fallen nearly 13.9% in the past three months even as Motilal Oswal Financial Services sees about 21% upside. The stock closed Friday on the BSE 0.22% higher at ₹953.10 after a week of sharp swings. Motilal Oswal points to a resilient domestic tea business and an expanding growth portfolio as long‑term drivers. The broker notes the company is launching new products across categories, reshaping its mix and reducing dependence on tea. Pricing actions are expected to offset cost pressure, and tea production is projected to remain flat in FY27 despite flood‑related disruptions in Assam and West Bengal and the adverse impact of El Niño. Moderating tea prices from their peak and strategic price hikes should keep standalone gross margins steady. The report forecasts a 10% revenue CAGR, 15% EBITDA CAGR and 20% PAT CAGR for FY26‑28 and gives the stock a Buy rating with a target of ₹1,230 per share, implying roughly 21% upside from the current level. Over the last three months the share value fell 13.88%, 14.84% over one year and about 14.76% over two years. Motilal Oswal cites four mid‑to‑long‑term triggers: strengthening the growth business, expanding the product portfolio and innovation, focusing on premiumisation and health‑wellness, and raising the innovation‑to‑sales ratio. ## Context Tata Consumer Products is a leading Indian FMCG company best known for tea; analysts watch both tea price trends and the firm’s diversification into new categories when valuing the stock.