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Monday, January 11, 2016
DIANA TEA CO.LTD (530959) :- PRINCESS OF TEA
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
"DIANA TEA CO.LTD"
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,
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
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.