Suspense Crime, Digital Desk : Tata Motors' sluggish stock expected to rally on robust plan Tata Consumer Products Ltd, a Tata Group giant, might not be among the stock performers, but brokerages remain bullish about its future. Moreover, the future plans of this Tata group company also appear impressive. Let us dig deeper into the future plans and target price of this stock.What is the future plan?To make this company the top most among competitors in terms of distribution network and also improve profitability, Tata Consumer is busy strengthening its distribution network. In an interview with Mint, Tata Consumer’s Group CFO Ashish Goenka said, "We want to stay ahead of all our competitors, whether it's our channel strategy or our entire product portfolio. Our medium term goal is to achieve margins of approximately 17 percent in the next three years, implying a margin improvement of 70-100 basis points on a year-on-year basis. The company reported a revenue growth of 15 percent for the financial year 2026 (FY26) at Rs 20,290 crore.In order to improve margins, Tata Consumer will focus on these four things – Strategic Pricing, Trade Margins, Promotion Optimization and Price Architecture.Apart from this, distribution network will also be strengthened." According to Goenka, “We are also looking for new channels or new markets that we didn't operate in. Some of the acquisitions have helped us to come in these channels as well.”Let's clarify, last year, in 2024, the company bought 'Capital Foods', the parent company of 'Ching's Secret' and 'Smith & Jones', through which they entered into the portfolio of sauces and spices and reached the hotels, restaurants and catering (HoReCa) services (food service segment) and with the acquisition of 'Organic India' which sells herbal supplements, the company has entered the pharmacy segment. Stock performanceCurrently, the shares of Tata Consumer are trading at Rs 1,110.90. So far this year, Tata Consumer shares have fallen by around 6%.The 52-week low and high for the company are 1,007.20 and 1,282.65 respectively.Tata Consumer has achieved this both in just two months. Recently, brokerage Citi has given a buy recommendation on Tata Consumer Products stock with a target price of Rs 1,450 per share. This shows an upside of over 30% in this stock. According to the brokerage firm, demand is still very strong and no signs of a slowdown are visible anywhere and strong growth momentum is expected to continue.Comodity prices are not likely to move substantially in the coming months so a cautious pricing approach can be followed, and big price hikes need not be done.Even though the input prices for few commodities will go up, still margins are likely to remain stable in the near future, said brokerage firm Citi. Further, structural factors for continued price increase and sustained profitability should remain firmly in place.
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