McLeod Russell brews a strong blend

McLeod Russell, which dipped over 6% to Rs.205 in the morning session is the top gainer on the BSE currently. In fact it rose over 14% to hit a new 52-week high today at Rs.248.30. In the last 11 sessions, it has gained over 45%.

The stock has been hitting new highs consistently for the past couple of days and today morning the dip was on account of one of the promoters selling huge chunk of shares in the open market. Promoter, Kamal Kishore Baheti, the trustee for Borelli Tea Holdings Ltd, today morning sold one crore shares, which is 9.14% of the paid up capital.

As at 30th Sept’17, Baheti held 27.07% or 24.73% stake in the company. Identity of the buyer is not known. The aggregate value for the stake sale was at Rs.205 crore

Tea stocks are as such on a high because on a macro level, production shortages in Assam and West Bengal, which are India’s largest tea making states, has led to a sharp rise in tea prices.