Tata Consumer Products Limited (TATACONSUM.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-10.5%

₹949.15

vs ₹1,060.20 price

Levered DCF

₹1,260.06

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

7.1

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	65.09×	75.98×	88.02×	53.79×	75.67×	67.87×	58.37×	31.78×
P/B	4.61×	4.86×	6.31×	3.98×	4.67×	4×	1.94×	1.77×
P/S	4.95×	5.51×	6.66×	4.7×	5.7×	5.01×	2.79×	1.79×
EV / EBITDA	35.07×	39.27×	45.03×	35.03×	41.66×	37.55×	21.43×	16.58×
Gross margin	30.3%	41.9%	42.8%	41.0%	42.2%	39.8%	43.1%	43.9%
Operating margin	10.7%	33.0%	33.8%	32.1%	33.0%	24.5%	26.1%	23.9%
Net margin	7.6%	7.3%	7.6%	8.7%	7.5%	7.4%	4.8%	5.6%
Current ratio	1.57×	1.54×	1.2×	2.12×	2.25×	2.28×	2.87×	3.09×
Debt / equity	0.13×	0.12×	0.22×	0.1×	0.09×	0.11×	0.11×	0.16×
Interest coverage	15.8×	21.01×	41.47×	50.83×	62.47×	43.57×	35.79×	42.46×
Dividend yield	0.8%	0.8%	0.8%	0.9%	0.6%	0.5%	0.8%	1.7%
Payout ratio	53.2%	58.0%	70.3%	47.6%	42.6%	31.2%	48.2%	52.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	7.1%	6.4%	7.2%	7.4%	6.2%	5.9%	3.3%	5.6%
Return on invested capital	5.4%	16.0%	15.7%	16.6%	15.9%	11.7%	9.3%	11.2%
Return on assets	4.5%	4.0%	4.1%	5.3%	4.4%	4.2%	2.5%	3.7%
Free cash flow yield	2.0%	1.6%	1.6%	1.4%	1.8%	2.5%	3.4%	-0.6%
Earnings yield	1.5%	1.3%	1.1%	1.9%	1.3%	1.5%	1.7%	3.1%
Enterprise value	₹997.9B	₹968B	₹1T	₹648.3B	₹706.9B	₹577.6B	₹273.1B	₹131.5B
Net debt / EBITDA	-0.21×	-0.14×	0.51×	0.03×	-0.05×	-0.27×	0.36×	0.22×
Cash conversion cycle (days)	22	31	34	63	71	71	101	141