It is a interesting read in outlook profit
It is a huge surprise that tea stocks outperformed sensex this year!
Reason: TEA prices have more than doubled.
Why? Drought like conditions in TEA producing states and ageing Tea gardens!
Gyan: India produces 50% of world tea!
There are 2 types of TEA company.
TEA producing companies/Plantation Players: McLoed Russel (Largest Producer of tea), Jayashree Tea and Harrisons Malyalam!
Branded Tea players or marketers: HUL and TATA TEA
Plantation players have almost doubled in last 3 months!
Buyers of tea: HUL and TATATEA will come under pressure and Plantation players will rise!
Take your pick
Charts will follow!