Tata Global Beverages

Posted On December 29, 2014 at 8:26 am by / Comments Off on Tata Global Beverages

Business & Background – Tata Global Beverages is a major tea and coffee producer in the country.

Prospects – Bloomberg’s current analyst coverage had eight buy, two hold and six sell recommendations on Tata Global. Bloomberg analysts’ consensus estimates pegged the consolidated FY15revenue growth for the company at 7.7 percent, Higher than the actual growth of 4.8 percent in FY14. A recent research report by brokerage anand Rathi on Tata Global sai stiff competition and product fatigue in overseas black tea markets were a cause of concern for the company, and hence the company was striving for growth in profit through control of operational costs. With an emphasis on its SG&A spend.

Valuation – at Friday’s close tis EPS for the past four quarters.