Tata Consumer offers a potential upside of 11 per cent; lowering of tea prices to aid margin expansion

“Standalone gross margin expanded by 320 bp YoY to 37.9 per cent in 1QFY23 due to a moderation in tea prices, which led to an 80bp expansion in EBITDA margin to 14.8 per cent. However, gross margin is 290 bp lower than 1QFY21 levels due to a surge in tea prices, led by lower production during that period,” the report added.