Tata Group Stock to Buy Now for an Upside of 30%; Check Citi Target Price

Despite the recent decline in its share price, Tata Consumer Products is gaining analyst confidence due to its expansion strategy, improved margins, and significant growth plans over the next three years

Tata Consumer Products Limited may have seen a recent slowdown in the stock market, but its long-term outlook remains positive. The company is actively working to strengthen its distribution network and refine its product strategy to stay ahead in the competitive market. Senior management has made it clear that the focus is not only on expanding reach but also on improving profitability.

The company has set a medium-term goal of achieving an operating margin of approximately 17% over the next three years. This will require consistent annual improvement of 70 to 100 basis points, reflecting a disciplined and structured growth approach.

The company reported revenue of ₹20,290 crore in FY26, a strong 15% year-on-year increase. This growth was supported by a combination of pricing strategy and improved operational efficiency. Management is focusing on four key areas to improve margins, including strategic pricing, optimizing trade margins, improving promotional spend, and restructuring the pricing architecture.

Along with these measures, efforts are being made to improve the distribution framework to ensure products reach a wider market. This dual focus on revenue growth and cost management is expected to strengthen overall financial performance in the coming years.

A major part of the company’s future strategy is to expand into new segments through acquisitions. In 2024, Tata Consumer acquired Capital Foods, the parent company of popular brands such as Ching’s Secret and Smith & Jones. This move has helped the company enter the fast-growing sauces and ready-to-cook segment, as well as expand its reach into the food service industry, including hotels and restaurants.

Furthermore, the acquisition of Organic India has enabled the company to enter the wellness and pharmacy segments. These strategic acquisitions are expected to unlock new revenue sources and strengthen the overall product portfolio.

Currently, Tata Consumer shares are trading around ₹1,110.90 and have fallen approximately 6% year-to-date through 2026. The stock has seen considerable volatility, reaching a 52-week low of ₹1,007.20 and a 52-week high of ₹1,282.65 in just two months.

However, global brokerage firm Citi remains positive on the stock. It has maintained a “buy” rating with a target price of ₹1,450, implying a potential upside of over 30% from current levels. The analyst believes that demand remains strong and there are no clear signs of a business slowdown.

According to Citi, commodity prices are expected to remain fairly stable in the near future, which will help the company adopt a balanced pricing strategy rather than aggressive price increases. While some cost pressures may persist, the overall outlook for margin expansion remains positive.

The brokerage also noted that continued product innovation and distribution channel expansion will play a key role in maintaining growth momentum. Structural improvements in the business are likely to support both revenue growth and profitability over time.