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C. Raja Rajeshwari

THE tea industry is passing through a difficult phase. The ballooning costs and consecutive losses of many companies have dampened investor sentiments.

Among the established large players, the market share in the packet tea segment, where realisations are better, will continue to be a key factor influencing stock valuations.

Tata Tea, the largest integrated company, is a major player in the packet tea segment, and has a broad portfolio straddling all price points, which helps it to ramp up its market share.

Tetley, its global brand, provides it with a greater exposure to the export market than any of the other industry players. Tata Tea offers good exposure in the long-term, as any improvement in the fortunes of the industry would be captured by it in a more pronounced manner than other companies.

Hold the Tata Tea stock and buy on declines.

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