Jayshree Tea burns hot on a tough market day

Jayshree Tea,the second largest tea producer in India and part of the diversified Jay Shree conglomerate under the aegis of BK Birla Group, is up by almost 15 per cent on Monday at Rs. 100 per share while making an intra-day high at Rs. 102.50  on an intra-day basis, which is also the 52 w high for the stock.

Tea and Coffee companies on Monday gained handsomely, attributed to firming tea prices in Assam & Coffee prices in global markets owing to uncertainty in coffee production in Brazil. 

According to DP Maheshwari, MD & CEO of Jayshree Tea the tea prices for quality tea are rising while common and medium tea prices are struggling. Jayshree Tea can expect to earn an additional margin of 15 per cent due to the current surge in tea prices for quality tea.

Jayshree Tea has 26 gardens and several big tea companies own their tea gardens. The stock is up by almost 52 per cent over a 1 year period and is trading above its 200-DMA (daily moving average) indicating bullishness in the scrip.

Tea companies like Mcleod Russel (6.76 per cent),Assam Company India (12.82 per cent),Harrison Malayalam (17.80 per cent) Ltd., are all trading up on a choppy trading day even as Sensex is down by almost 1.09 per cent trading at 26354 levels.