The Hindu Business Line : Tea stocks jump on higher consumption

Other stocks to gain included: Assam Company (up 12.63 per cent at Rs 37.90), Ledo Tea (up 8.53 per cent at Rs 38.15), Dhunseri Tea (up 4.79 per cent at Rs 64.55), Williamson Tea (up 2.33 per cent at Rs 135.90), Tata Tea (up 1.06 per cent at Rs 429.20) and Eveready Industries (up 3.69 per cent at Rs 54.85).

According to Mr Arun Kejriwal, Investment Strategist at Angel Broking, prices of CTC have increased more than orthodox ones on export demand.

However, in the long term, orthodox tea will be a bigger beneficiary on firm prices.

The increase will be sustainable due to fundamental factors. Prices have started to pick up, taking a cue from the 4-5 years cycle and it is the beginning of the first quadrant of the tea cycle.

To promote export of orthodox tea, the Government is considering providing incentives to producers and this would benefit several companies, feels Mr Kejriwal.

Analysts said several companies till now were catering to the wholesale unbranded market, however this trend is changing.

An analyst with a domestic broking firm said several companies have started selling tea under their own brand and some of their brands are strong in specific market.

"Market has yet to discount this in several of the tea companies stocks," he said.

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