The Tea prices in India is up by Rs 15 this year when compared with last year prices. With rising tea prices that continue to increase for the third consecutive week, the tea companies will surely make higher profits in coming quarters.Jayshree tea registered a topline and bottomline of Rs. 455 crores and Rs. 53.36 crores respectively for the fiscal year 2011. The EPS for the same period was approximately Rs. 24. At the CMP of Rs. 161 the stock is available at a PE multiple of just 6.7 times. The company whose face value is Rs. 5 declared 60% (Rs. 3) dividend this year.
52 week High/Low for the stock is 210 / 136.
If tea prices continue to remain high it should create positive sentiment about the sector in coming days and company being the direct beneficiary of higher tea prices should also register higher topline and bottomline in FY-2012 .
Hence InvestorZclub believes that the stock might provide a decent return of 10% - 20% in 3 to 6 months time frame.
Stock touched an intraday high of 178.60 in today's trade and closed at 176.70.
ReplyDeleteThe stock has already generated 10%return on the recommended price of 161 on 27th June in a short span of 1 week. Hence book profits at the current level.
cjayshree tea has a target of reaching yearly high of 210 and even more on higher tea prices and dividend and probably private placement of shares---BHARAT DESAI
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