Shares of Tata Coffee Limited surged 8.45 per cent to hit an all-time high of Rs 254 on the Bombay Stock Exchange (BSE) after the company posted a good set of numbers for the quarter ended September 2021.
The company reported a net profit of Rs 53.66 crore for the quarter ended September 2021 compared with a profit of Rs 42.40 crore in the year-ago period.
The stock opened 2.56 per cent higher at Rs 240.20 against the previous close of Rs 234.20. With a market capitalisation of Rs 4,603 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day, and 200 day moving averages.
The small-cap stock has gained 139 per cent in the last one year and has risen 135 per cent since the beginning of this year.
Total Income grew 1.4 per cent to Rs 554.32 crore in the September-ended quarter against Rs 546.63 crore a year ago, driven primarily by improved sales of instant coffee business in India.
The company said that the instant coffee business registered substantially higher export volumes and turnover compared to the corresponding quarter of the previous year.
"This has been despite lower demand with 'Out-of-Home' channels impacted across the globe due to the pandemic and also continued inflationary pressures on ocean freight costs and input costs, including power and packing material," the company added.
Commenting on the performance of the company and the group, Chacko P Thomas, Managing Director, Tata Coffee Limited, said, "Despite challenging conditions of unprecedented freight cost increases and inflationary pressures on input costs, including power and packing material, our overall performance has improved."
"Our India instant coffee performance has been robust. We have seen stable performances across key geographies. Our Vietnam operations continue to be healthy despite higher sea freight costs, and order pipeline continues to be encouraging. Our subsidiary, Eight O'Clock Coffee has, during the quarter recorded, improved performance on account of favourable channel mix and better cost management," he added.
According to MarketsMojo, the company has declared positive results for the last six consecutive quarters. The technical trend has improved from Mildly Bullish on October 12, 2021, and the stock is technically in a Bullish range. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, and OBV.
However, it noted that the stock is trading at a premium compared to its average historical valuations and with a ROCE of 17, it has an Expensive valuation.
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