Tea stocks are piping hot

Harrisons Malayalam is really piping hot today, currently up 12.5% at Rs.61 levels with volumes up almost 12.5 times. It hit an intra day high of Rs.62.45 which was inches away from its 52-week high of Rs.63.90. Another tea company, McLeod Russel is amongst the top gainers on the BSE, with volumes up 10 times and price up 4% at Rs.184.

All the other tea companies are also up – Assam Company, Tata Global, Asian Tea, Jay Shree Tea, Goodricke, Diana Taea, Duncans, Warren Tea.

The reason for this rise in a TV interview by Jay Shree CMD, who said that he see’s a shortage looming large – around 50 t0 55 million kgs of tea in India. He said that he expects prices to rise by around Rs.10/kg, this is over and above the current price rise of the same. Volumes are expected to rise and this will boost the bottomlines. The true impact of this price rise and the oncoming one will be felt in FY17 as crop yields this year have been poor.