Sharekhan has maintained its buy rating on Tata Tea with a price target of Rs 853 in its March 23, 2009 research report.
“With tea volumes growing moderately in the domestic and international markets, Tata Tea (a strong player in the branded tea markets, both domestic and international) is seeking opportunities to expand its domestic as well as international beverage portfolio beyond tea and coffee, which could be a future revenue driver for the company.”
“We believe Tata Tea’s focus on new geographies and new initiatives (such as green and herbal tea, fruit-based beverages and mineral water) augur well for the company to sustain the growth at a consolidated level. We believe these valuations are attractive, more so considering the net cash (cash minus debt) of Rs 81 per share (as on December 31, 2008). We maintain our Buy recommendation on the stock with the price target of Rs 853,” says Sharekhan’s research report.
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