Tata Coffee has been rising and spiking in the last 2 days. 20% upper circuit on Thursday and an intra-day high of over 15% yesterday.

Its coffee supply deal with Starbucks, which has started opening stores, strong results in the recent quarter make it very attractive.

Tata Coffee said the increase in income was driven by higher instant coffee volume and better realisations in plantations. Profits, on the other hand, have surged on the back of higher operating profit and lower interest.

Tata Global Beverages and Starbucks joint venture, sources coffee from Tata Coffee, started rolling out stores last month. The initial response has been very good and that also means better offtake for Tata Coffee.

Tata Coffee has also recently set up a new roastery in Coorg, Karnataka, from where it will initially supply to the Tata Starbucks outlets in India and then aim for gradually supplying Starbucks' outlets around the world.