Key points from this report:
- Buy. We reiterate our buy recommendation on TCPL after the stock broke out of a stage-two consolidation on strong volume. In spite of recent weakness in Indian markets, it has held onto its 21-DMA, indicating strength.
- TCPL has one of the fastest growing profiles among Indian Staple stocks, reflected by top-notch fundamental O’Neil Ratings (EPS Rank of 87 and SMR Rating of A). Trends toward premiumization and synergies from the acquisition of Tata Chemicals’ Food Portfolio will continue to generate strong bottom-line growth, with consensus expecting >20% EPS CAGR in the next three years.