Tata Consumer Products's intrinsic value using Intellectual Capital analysis

Tata Consumer Products

BSE : 500800

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NSE : TATACONSUM

Industry : Tea & Coffee

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ISIN : INE192A01025

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FreeFloat : 65.00%

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FnO : Yes

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LotSize : 675

BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | BSE Midcap | BSE Midcap Select | Nifty Alpha Low Volatility 30 | Nifty FMCG | BSE Low Volatility | Nifty Alpha 50 | Nifty Low Volatility 50 | Nifty100 Alpha 30 | BSE 100 ESG | BSE CARBONEX | BSE India Manufacturing | Nifty India Consumption | Nifty Non-Cyclical Consumer

Intellectual Capital (IC)	21,058.77
Net Worth (NW)	16,293.56
Intrinsic Worth (IW)	37,352.33
Market Cap (MC)	71,641.44
Economic Value Added	-437.70

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	56.38%
IC Gross Margin (EBITDA/IC)	9.06%
IC Net Margin (NPT/IC)	5.56%
Knowledge Turnover (Sales/IC)	0.66
Market to Intrinsic Value (MC/IW)	1.92

As Of	Intrinsic Value	Market Price
31 Mar 2022	Rs. 405.32	Rs. 777.40
26 May 2022	----	Rs. 722.25
26 May 2022	----	6.05 0.84%

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : No	Sell	10 DMA : Rs. 730.59	Accumulate	Sell on Rallies
KB > 50% : Yes		50 DMA : Rs. 771.59
0 < M2IV < 1 : No		Vol-Price trend : Rising

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Jun-19
C
1897.13
1927.66
287.27
241.27
223.03
149.11
71.11

Sep-19
C
1834.06
1859.35
258.44
211.62
191.55
143.23
175.64

Dec-19
C
1961.90
1987.85
264.73
215.58
196.36
140.47
388.80

Mar-20
C
2405.03
2426.96
65.90
1.86
-16.84
-122.48
75.93

Jun-20
C
2713.91
2746.62
578.67
516.77
499.49
389.09
348.85

Sep-20
C
2781.34
2807.56
401.90
339.33
321.46
273.18
327.33

Dec-20
C
3069.56
3089.05
374.69
310.29
292.20
237.38
451.89

Mar-21
C
3037.22
3080.18
279.23
213.36
197.91
74.35
112.99

Jun-21
C
3008.46
3036.47
423.58
356.79
336.36
200.24
346.20

Sep-21
C
3033.12
3072.74
436.61
367.30
347.52
285.80
161.26

Dec-21
C
3208.38
3233.42
473.52
403.72
387.56
290.07
297.24

Mar-22
C
3175.41
3222.80
441.54
369.43
353.02
239.05
234.73

* C - Consolidated, S - Standalone