Tata Coffee Ltd

CMP: 720

Tata Coffee Ltd. grows, cures, manufactures, and markets coffee and tea products.

July coffee exports jump 29% and Tata Coffee is an excellent buy in its sector. Tata Coffee has been on a bullish trend in 2011 as coffee commodity prices have been on the rise and its expected to stay bullish. Its currently trading at a fair P/E of 21. Revenues have grown from 267 Crores to 401 Crores in the last 5 years. Profits have grown strongly from 20 Crores to 55 Crores in the same period aided by NPM growth. NPM has picked up strongly from less than 8% to almost 14% in the last 5 years. Its a strong buy with long term perspective. Buy and Hold.

Coffee exports grew by 29% in April-August 2011

With time, coffee prices are expected to go up as most commodities. Buy on dips