McLeod Russel, Jay Shree Tea hit 52-week high; Harrisons Malayalam up 20%
As many as nine tea stocks – McLeod Russel India, Jay Shree Tea, Tata Global Beverages, Warren Tea, Goodrick Group, Dhunseri Tea, B&A, Terai Tea and Harrisons Malayalam – hit their respective 52-week highs on the BSE. By comparison, the S&P BSE Sensex was down 0.30% at 33,621 points at 03:05 PM.
In September this year, owing to heavy torrential downpour, tea production in Assam, which accounts for over 50% of the annual tea production in the country, fell by 27% at 81.75 million kg (mkg). Production in West Bengal’s Dooars region also dipped by around 19% at 43.01 mkg in the same month, the Business Standard reported. CLICK HERE TO READ FULL REPORT
“Since the start of calendar year 2017 (CY17), weather conditions are getting adverse. Hence, Kenya’s tea production is already down by 43 mkg till Aug-17. This decline in production has positively impacted the Mombassa auction prices, which have increased around 25% YoY to US$ 2.86/kg for 9MFY18,” analysts at ICICI Securities said in McLeod Russel’s result update.
The brokerage firm believe that with better export environment, McLeod Russel would focus on improving exports and would report healthy growth on a low base. It expect export revenue to clock 30.0% CAGR in FY17-19E.