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Motilal Oswal Report
Tea price inflation has impacted Tata Consumer Products Ltd.’s performance since the last four quarters.
However, we expect gross margin to improve from Q2 FY22 onwards as tea prices have declined (down 32% from their peak in August 2020 to Rs 175/kilogram in August 2021).
In this note, we have analysed the impact of the fall in tea prices on Tata Consumer Product in the near term.
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