PE of tata consumer is 64 and TTM PE is around 56… Although it may seem on a higher side considering the peers, the growth can be much faster here as the company is not well established and still exploring different avenues for growth through organic and inorganic expansions.
Also, Starbucks JV is included in TCPL and considering it as a QSR, it command a higher PE. Although the co. has not shown volume growth in the past few quarters, I feel the growth will be back on track soon (obv. bcz it is TATA). But as the market is Continuously becoming more and more competitive, it remains to be seen how management will increase its retail network and sales through branding. I think it will take sometime and that’s why stock is consolidating in range as the market is waiting for growth.
If anyone has diff. view, I am open for any constructive criticism.
disc.- Invested 5% of PF. Baised. No reco to buy/sell
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