Tata Consumer is pretty volatile currently, not quite able to decide whether it should rise or fall. The stock opened flat at Rs.739.80, went up to Rs.745.50 and soon fell to Rs.734 and is now trading at Rs.737 in the red.
The stock rose initially on news that its plans to acquire India’s number one bottled water company, Bisleri is nearing closure. Valued at Rs.6000 to Rs.7000 crore, Tata Consumer will take over wherein initially the existing management of Bisleri will continue for two more years. The details of how the funding will happen is being thrashed out.
Edelweiss has put out a ‘buy’ report saying that this acquisition will be EPS accretive for the company, setting a target of Rs.940.
Ramesh Chauhan acquired this brand from an Italian company in 1965 and today it is India’s generic name for bottled water. It has 122 operational plants across India with 4500 distributors. The company is expected to end FY23 with a turnover of Rs.2500 crore and net profit of Rs.220 crore.