Tata Global Beverages declines on brokerage downgrade

Tata Global Beverages fell 2.67% to Rs 169.70 at 14:15 IST on BSE on reports a foreign brokerage maintained underweight rating on the stock.

Meanwhile, the BSE Sensex was up 15.60 points, or 0.06%, to 25,856.81.

On BSE, so far 1.43 lakh shares were traded in the counter, compared with an average volume of 6.12 lakh shares in the past one quarter.

The stock hit a high of Rs 175.80 and a low of Rs 168.50 so far during the day. The stock hit a 52-week high of Rs 177.15 on 10 June 2014. The stock hit a 52-week low of Rs 131.25 on 28 August 2013.

The stock had outperformed the market over the past one month till 2 July 2014, rising 18.28% compared with 4.68% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 13.69% as against Sensex's 14.59% rise.

The large-cap company has an equity capital of Rs 61.84 crore. Face value per share is Re 1.

According to reports, the brokerage believes increased competition in the branded tea business, increased product development expenses, sharp increase in ad-spends and likely sub economic returns on the cash that the company has on its books near term may limit stock performance.

On a consolidated basis, Tata Global Beverages net profit fell 27.63% to Rs 69.30 crore on 3.25% increase in total income to Rs 1926.15 crore in Q4 March 2014 over Q4 March 2013.

Tata Global Beverages is a global beverage business. The company has significant interests in tea, coffee and water and is the world's second largest tea company.

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