Originally posted by sajanvm Tata Tea at current market price of Rs750 : Market cap: 4500 Cr Consolidated debt: 4500 Cr EV : 9000 Cr Consolidated sales: 4000 Cr.   As was widely reported, Tata Tea sold their Glaceu stake to Coca Cola for $1B . This will accrue to the company in Nov and will be a tax free gain.

I think that by getting out of plantatins Tata tea has also become a branded player froma  commoditized one. It does look cheap nut unfortunately cheap and deep value plays do not thrive in a bull market that seems to focus on just one thing "growth".It is that biasness of the market which allows investiors to pick up stable companies like this at thse valuations.

Originally posted by basant I think that by getting out of plantatins Tata tea has also become a branded player froma  commoditized one. It does look cheap nut unfortunately cheap and deep value plays do not thrive in a bull market that seems to focus on just one thing "growth".It is that biasness of the market which allows investiors to pick up stable companies like this at thse valuations.   Over a period of time Tata tea is a stable 15%-20% grower. A cousin of mine attended the AGM and indicated that Ratan Tata said that he has big plans for Tata Tea.

Was it not the master who said "In the short run, the market is  a voting machine. In the long run it is a weighing machine". 

 

rgds

Edited by basant - 15/Nov/2007 at 9:28am

Tata tea can be one of the value buy at this level, but when we look at the current bull run, we can clearly see that it is momentum stocks or any company with major capex plan are moving up, this happens when we are in the last leg of any bull run, so why don't we wait for sometime let market go for major correction (when momentum stocks falls, other will also fall) then buy this value stocks.