TATA Consumer Products Ltd Complete Fundamental Analysis

Description
TATA Consumer Products was formed when Tata Chemicals de-merged it’s Consumer Products Business (CPB) as a going concern into Tata Global Beverages in an-all equity transaction in February 2020. The overall aim of the transaction was to create a sizeable Consumer player in the Indian market with enhanced scale and financial strength. The company currently manufactures Tea, Coffee, Liquid beverages, Salt, Spices and Staples and operates a joint venture with Starbucks in India. Some of their major brands include Tata Tea, Tetley, Himalayan Water, Tata Salt and Tata Sampann.

The Model covers all the major fundamental aspects of Tata Consumer Products over the ten year period. The model is easy to edit and update for the future years as well. It includes:
1. Growth Ratios
2. Profitability Ratios
3. Cash Flow Ratios
4. Liquidity and Solvency Ratios
5. Efficiency Ratios
6. Valuation Ratios
7. ROE (Du Pont Analysis)
8. Common Size analysis
9. Enterprise Valuation
10. Financial Strength Analysis

Further Qualitative analysis is also done considering these factors and ratings have been assigned. The complete detailed analysis is in the word document along with the Excel model.

More about the Company:

After the restructuring, the company’s addressable market has increased by 300% and 90% of its total revenue comes from branded business. This will give them a cost advantage due to the economies of scale. The company owns some popular brands like Tata Salt which is No.1 salt brand in India. Their Tata Tea brand is No.1 in terms of volume and No.2 in terms of value.

Tetley brand is among the top 3 in the UK and Canada along with Eight O’ Clock which is the 4th largest player in coffee bags in the US. Some focused brands like Tata Tea Agni and Spice Mix continue to grow in double digits in India. Overall the company has a wide global presence along with strong branding and backing of the 150-year-old Tata conglomerate.