Tata Coffee shares continued to rally on Friday, November 16th hitting a life high of Rs 1,557.70 on NSE, Stock rallied 33 percent after announcing its quarter results on Oct 22, Latest stock price and expert view on Stock

Tata Coffee shares continued to rally on Friday, November 16th hitting a life high of Rs 1,557.70 on NSE, Stock rallied 33 percent after announcing its quarter results on Oct 22, Latest stock price and expert view on Stock



Tata Coffee surges 6%; pares gains after hitting record high. Shares of the company zoomed up by nearly 16 per cent to touch a record high of Rs 1,562.45 on the BSE during the day. It finally settled at Rs 1,427.50, up 5.89 per cent.


On NSE, the scrip ended at Rs 1,402, 4.01 per cent higher from its previous close.

“It looks like a speculative rally. No specific reason...May be Starbucks deal is making speculators drive up the stock,” CNI Research, CMD, Kishor Ostwal, said.

In terms of volume, 12.34 lakh shares of the company, which is the country’s largest coffee producer and exporter, changed hands on the BSE, while over 34 lakh scrips were traded on the NSE.

The rally in the counter was in sharp contrast to the overall weak stock market trend where the BSE benchmark Sensex closed 162 points lower at a two-month low of 18,309.37.

Separately, Tata Global Beverages -Starbucks joint venture, which sources coffee from Tata Coffee, started rolling out stores last month. The initial response has been very good and that also means better offtake for Tata Coffee.

Tata Coffee has also recently set up a new roastery in Coorg, Karnataka, from where it will initially supply to the Tata Starbucks outlets in India and then aim for gradually supplying Starbucks' outlets around the world.

Analysts say the association with Starbucks too got investors excited as the supply deal will definitely boost its volumes and earnings.

Analysts also said some investors may be accumulating the stock after recent good earnings performance. Tata Coffee’s consolidated net profit jumped over two-fold to Rs 36.84 crore for the second quarter ended September 30, 2012.

The company had posted a net profit of Rs 17.59 crore for the corresponding period of previous fiscal.

SP Tulsian View on Tata Coffee

SP Tulsian of sptulsian.com recommends investors to book their profits in Tata Coffee  after the shares surged today. The stock hit Rs 1,557.70 on NSE. The stock has been on a run, up 33 percent, since it announced second quarter results on Oct 22.

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