Do we value branded companies like Tata Tea also the same way?

 

If yes. Then Tata Tea could be valued at 16,000 cr.

 

A good value buy.

 

Nestle is also value at 4 times sales.

 

Do clarify on this...

 

Tata Tea has a mission to grow 5 times in 5 years

 

Tata Tea has a global array of brands......plus also not, that this company is the holding company of Tata Coffee and as a result, 8 o'clock coffee. now, its also gradually piling up Mount everest Mineral water. This company also has a sizeable stake in rallis india.

 

Tata Tea is a very stable play. thats why, whenever a mayhem occurs, this stock remains insulated relatively. Its a buy on declines, sort of a stock.

 

Also, to consider is what Lever plans to do with its tea businesses. Somehow I get an inkling, that Unilever may walk out in case they get a right price. I sense it because they seem to be quite less aggressive with their ads in the electronic media. Otherwise there is little dubt about Unilever's brand strength in the form of Brooke bond, Lipton, Taj etc......