Monday, January 11, 2016

DIANA TEA CO.LTD (530959) :- PRINCESS OF TEA


Dear friends,

 



Today we are discussing a stock in Tea sector for medium to long term portfolio. This sector is generally not touched by investors, but the stock which we are discussing will fetch investor a multiple returns in a days to come.



                      
                             

            "DIANA TEA CO.LTD"



      Image result for cup of tea imageImage result for cup of tea image



Diana Tea Company Limited (DTCL) is a century old company, registered in the year 1911. The company was run by NawabGulamJabbar& Family till 1976. DTCL was engaged in cultivation and manufacture of tea from its only one garden i.e. Diana Tea Estate. Aares Group took over Diana Tea Estate in the year 1976 and elevated its production from a meagre 2.5 lakh kgs.per annum to a staggering capacity of 10 lakh kgs. per annum.


 


Aares Group added more feathers on its caps by acquiring Baintgoorie Tea Estate in the year 1983 from Duncans Agro Industries Ltd. and Goodhope Tea Estate from Bazaloni Group (B.C. Jindal) in the year 1997. DTCL now produces 3.54 million kgs black tea annually from its three estates - i-e- Diana, Baintgoorie and Goodhope Tea Estates.


 


Diana tea is packed fresh and symbolizes high quality. It is most popular in Haryana, especially Primary grades like BP and BOPSM. Diana tea has also developed a niche market in Rajasthan for its ‘Fanning grades’ such as OF, PD and small quantities of BOPSM. Following Haryana and Rajasthan, Diana primary grade tea has captured good market share in Madhya Pradesh and Punjab.


Apart from North and North Western regions of India, Diana tea is increasingly popular in areas of West Bengal, Uttar Pradesh, Gujarat Chhattisgarh, and Maharashtra.


Diana Tea Company is constantly seeking expansion by targeting newer regional markets such as Karnataka and Tamil Nadu, where it is gaining momentum in terms of greater popularity and increasing sales.



Promoter holding 61.34 % stake, company posted 26.33 cr top line and 5.43 cr bottom line in latest half year ended 2015 ( last year full year bottom line was 2.17 cr ). Tea prices are predicted to go higher by 20 – 30 Rs / Kg in April- May month. This has been witnessed by higher trading at Coonoor Tea Exports. This will help to improve the company’s bottom-line significantly. With all above facts the Diana Tea will be a multibagger for the Investors.


Diana Tea Trading only in BSE at Rs.22.50 level, Investors can buy this stock at current price or in correction (if any). Before buying any stock consult certified financial person.


Disclosure: It is safe to assume that I have vested interest in the stock.

9 comments:

  1. Dear Sir,

    How can we know immediate after ur post plz suggest many time i miss ur level

    ReplyDelete
  2. Good pick sir, What is your veiw on Ansal property

    ReplyDelete
  3. How to know about your posting in the blogg as soon as you post the same so that I can buy at your recommended level? Is it possible to set alert for real time update?

    ReplyDelete
  4. Respected Sir,
    Please give your view on Welspun Syntex and Zenith Fibre both are in textile section.

    ReplyDelete
  5. Hello Sir,

    I bought it around @ 24 levles I have 1 year horizon time , Can I hold on it, Please suggest me ?

    ReplyDelete
    Replies
    1. Already shared my view in blogs, i expected tea price should pick up in coming months, up and down in share price is common in stock market.

      Delete
  6. I bought at 27, now I believe 18 should be good support to accumulate.

    ReplyDelete