Plantation Sector Analysis- diffrenciate Tea & Rubbber counters

Bolinger

Bolinger

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Friends,

plantation was the best performed sector on friday. With sector PE is around 8 , this will be future winning sector. With market correction overvalued sectors should adjust to its true fair value, simmilarly plantation with lowest CSE PE sector, should increase to correct PE.

But we need to identify good plantation counters which expect to comeup with good results.

for this we need differciate plantations with heavy dependence with Rubber from Tea !!!

With Rubber prices are going down daily, this idenyification will be key for our sucess !

For our knowledge purpose can we list the countetrs with heavy Rubber and Tea dependent ????

Thank you!!!

VALUEPICK

VALUEPICK

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New development in the plantations sector.

Is the trend going to change from October? During last tea auctions in OCTOBER high grown prices and CTC Medium Tea have increases more when compare with corresponding last year. Will we see higher prices for high grown tea and CTC over low grown tea in the coming tea auctions? Is there any reason for this? Finally did global buyers or tea consumers identify high quality nature of high grown tea?

Bolinger

Bolinger

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Valuepick, as per my little understanding on tea industry, till Oct , low grown tea had better price than high grown tea in recent times.

The change in Oct tea auction will be a new trend setter.

The current Ebola virus issue with possible ban of African tea, in world tea market could be reason for this ? i think African, Kenyan tea tea is much simmilar to our low grown tea ?

Any experts in Tea industry ?

VALUEPICK

VALUEPICK

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Bolinger wrote:Valuepick, as per my little understanding on tea industry, till Oct , low grown tea had better price than high grown tea in recent times.

The change in Oct tea auction will be a new trend setter.

The current Ebola virus issue with possible ban of African tea, in world tea market could be reason for this ? i think African, Kenyan tea tea is much simmilar to our low grown tea ?

Any experts in Tea industry ?

We need to do some study on your above facts. They are very good points. Yes Low grown tea had higher averages during last couple of quarters. It is interesting to see how tea market is going to form trend now onwards and in the coming years. Will it become one of the emerging commodities in the world? As I said we need further study on this sector to get wise decisions in the future due to new development in the global tea market. Why do top giants such as Starbuck and MacDonald Food etc want to involve in tea business now? It looks like even Nestle want to involve with this tea business.

http://www.thehindubusinessline.com/companies/nestle-takes-bengals-jungpana-tea-to-global-consumers-with-specialt-brand/article6512261.ece

Nestle takes Bengal’s Jungpana tea to global consumers with Special.T brand

Food and Hot beverages sector will have one of fastest growth in the Asia pacific region in the coming decade. Till August 2014 tea output in North India Which covers Assam, West Bengal and all other states outside the four southern ones are down. There is a limit of supplying certain high quality tea in places such as Darjeeling, Assam and high and mid grown areas in Sri-Lanka. It is true in global market rubber and palm oil prices were in down trend. Local palm oil producers benefited due to higher import duty on edible oils. Eventually rubber prices also should go up in the future. Actually I am thinking about adding some rubber stocks too. May be in 2015. There will be light at the end of the tunnel. BTW don’t forget these plantations companies have some commercially viable land. We will wait and see how prices are going to fetch for quality high grown tea during Coming Western Quality Season.

Actually Sri-Lanka makes some of the best quality tea in the world.

Eg.

Nuwara Eliya's teas are light, mellow, and floral, with an aroma of rock fruits, and a rich golden color, competing with Darjeeling as some of the world's best black teas.

Uva, Nuwara Eliya, and Dimbula which is probably Sri Lanka's most famous tea growing region. The World's Best Fruity Black Teas are Sri Lanka's High-Grown Teas.

Good luck!

Bolinger

Bolinger

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Thks VP for valuable info.
will read and research on this topic !!!

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Plantation Sector Analysis- diffrenciate Tea & Rubbber counters

1 Plantation Sector Analysis- diffrenciate Tea & Rubbber counters Sat Oct 18, 2014 12:11 pm

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2 Re: Plantation Sector Analysis- diffrenciate Tea & Rubbber counters Sat Oct 18, 2014 3:48 pm

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3 Re: Plantation Sector Analysis- diffrenciate Tea & Rubbber counters Sat Oct 18, 2014 4:19 pm

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4 Re: Plantation Sector Analysis- diffrenciate Tea & Rubbber counters Sun Oct 19, 2014 4:54 am

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5 Re: Plantation Sector Analysis- diffrenciate Tea & Rubbber counters Sun Oct 19, 2014 11:37 am

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