CMP : 187


Jayshree Tea & Industries Ltd. cultivates tea on its plantations, and trades, warehouses and exports tea. The Company also manufactures chemicals and fertilizers and produces sugars.

Jayshree Tea is a decent bet. From FY09 to FY10, they have improved their NPM from little over 3% to as high as 15%, which is a remarkable jump i should say. If they continue not to drop in NPM, thats going to make it a great bet in the long run considering current P/E levels of 7 . They are little high on liabilities and it shouldn't be a problem as long as their NPM is good. Tea is seasonal and next 2 quarters are usually strong. Buy, accumulate on dips of 15%, keep close watch on results and have patience on this one.