Tata Consumer Products Limited (TATACONSUM.BO) stock analysis

In our weekly check, Tata Consumer Products Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5.

About Tata Consumer Products Limited

Tata Consumer Products Limited is a Consumer Defensive company (Packaged Foods) based in India, listed on BSE as TATACONSUM.BO.

What our checks show for TATACONSUM.BO

Red flags

• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The gross margin fell by 11.9 points, to 30.3%: costs are rising faster than prices.
• The dividend takes 5053% of profit: little cushion if profit falls.
• The price is 59.7 times earnings (P/E): the market already pays for a lot of future growth.
• Thinly traded (about 94 thousand shares a day): buying and selling can move the price.

Warning signs

• The net margin is only 7.6%: little room if costs rise.
• The stock has fallen as much as 55% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 8.5%.

Strengths

• Debt is low: 0.11x equity.
• Operating cash flow is 1.57x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 20.9% a year over the next years.
• Analysts expect the net margin to improve by 2.1 points from today's 7.6%.
• A large company: market value $10.69 billion.
• Beta 0.4: the stock usually moves less than the market.

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Questions

What grade does Tata Consumer Products Limited (TATACONSUM.BO) have?

In our weekly check, Tata Consumer Products Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TATACONSUM.BO stock?

This week's biggest flags for Tata Consumer Products Limited: Weak interest cover, Gross margin falling, Dividend stretched. In total 8 of 25 checks show a warning or a red flag.

What does Tata Consumer Products Limited do?

Tata Consumer Products Limited is a Consumer Defensive company (Packaged Foods) based in India, listed on BSE as TATACONSUM.BO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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