Slow and steady Tata Consumer is winning the race for investors!

Tata Consumer is one of the several stocks belonging to Tata group that has given a breakout on Wednesday, in spite of markets witnessing a strong profit booking session. 

Tata Consumer is one of the several stocks belonging to Tata group that has given a breakout on Wednesday, in spite of markets witnessing a strong profit booking session. 

Tata Consumer was up by more than 2 per cent on Wednesday, closing at Rs 734.65 per share. The stock made an intraday high of Rs 737.75 per share which is also its all-time high. The stock gave a nice breakout with heavy volumes in today’s session under difficult market conditions. On BSE the spurt in volumes in Tata Consumer was more than 6 times its daily average volume. In June the company announced a dividend of Rs 4.05 per share, thus improving the sentiment for the counter. Tata Consumer is almost debt free and has delivered impressive profit growth of 151.35 per cent CAGR over last five years. However, Tata Consumer has reported flat financial performance in March 2021 quarter. The company has a high dividend payout of 45.45 per cent. 

Stock gave a 3-year return of 164.38 per cent as compared to Nifty 100 which gave a return of 44.39 per cent. Tata consumer is up by more than 99 per cent in one year and in five years it is up by more than 483 per cent. On YTD basis the stock is up by 22.14 percent.

Tata Consumer reflects a low beta of 0.76. It means that the stock is less volatile compared to the Sensex or overall market. Also,  the low beta stocks tend to do well during the times of market correction.

Nifty managed to close down by more than 100 points on Wednesday, indicating weakness.  The short-term momentum of Nifty seems to have broken by this decline. The immediate support of 15715-15700 is going to be crucial for a sustainability of uptrend.

Tata Power is the other stocks form the Tata group that is very close to multiyear breakout level and reflects a high dividend yield. Nelco, TCS, Tata Communications, Titan and Tata Motors are some of the Tata group companies seen outperforming markets lately.