TATA Global Beverages More than doubled in 2017!

Does anyone know the reason behind such a stellar performance? Is the movement justified?

Some bit of it on this link:

Yeah. Branded business has grown but at the same time it took a hit in non-branded business. The question is will this trend continue. Results are already factored in the price.

The market is famous for overbuying and overselling. But one can never really tell.

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I am not sure but it can fall anytime and will correct till 240-245 Levels.

Delivery Percentage is 13.11%.
Investors have Booked their Profits at Higher Levels.
Stock is in Day Traders hand now.

Moving averages are showing more upside.
Lets see what will happen in upcoming session.

Increasing operating margins is the major reason making this stock skyrocket. The management is efficient and quick in doing away with less profitable units as well, ex. Selling of Russian unit. Focussing more on branded items signals bigger margins in future as well.
Also, Tata Globals has been range bound b/w 100- 200 since the time of listing, a break from that level was expected anytime and was long overdue.

Interesting thing is , even at this price P/E is lower compared to other major FMCG companies like HUL, Nestle, Brittania, Godrej etc.

Having said this, a correction is expected soon due to profit booking.

Is it even reasonable to compare this stock with other FMCGs. I mean Mineral water, Star bucks coffee is more consumer discretionary when compared to soaps, toothpaste etc.

Well, @Sandeep_Konda next time when you are in super market just check all the tea brands available there :slight_smile: . It is almost a monopoly for Tata. Also, Gluco+ has got into even the remotest of villages making it the only energy drink at that price range. In a long term, I believe this is going to be a huge contributor to their revenue. Also, their foreign brands are in general performing well.

Also, I would like to emphasize that, am not an expert in analysis. My study is a mix of news items and what I see around and there could be a lot more which I have missed or not understood.

But, a Tata brand + midcap + consistent improvement in top line and bottom line is definitely an appealing stock for me.

I agree with the Tea business. I deliberately avoided it because Tata’s Monopoly in the Tea business is nothing new. My concern is about the sustainability of margins on the branded items and valuations. The Recent increase in stake by promoters could have boosted confidence among investors. Anyways, its a wait and watch for next couple of quarters. Hoping for a better price to enter.