Author: CP

BOFA Merrill is bullish on the prospects of Tea Business. North India crop was up 10% till April-2010, these gains will likely be offset
by a drop in production during May and June led by pest attack and excessive rains. Annual production will likely remain flat in FY11 vs industry estimate of 5% growth. Expect upward movement in tea prices ahead, led by i) increasing shortage, ii) seasonal improvement in quality and iii) increased presence of institutional buyers.

Kenya and Sri Lanka form over 25% of global black tea produced and saw 33% YoY scale up in production to normal levels till (more…)

Just after the Government went to De-Regulate Petrol Prices, Brokerages were busy BUYING Oil Marketing Companies and later upgrading the same.

Indian Oil Corporation -Outlook for deregulation has thus brightened. The upside to IOC’s FY11E EPS in this scenario would be 20% to Rs42/share. Even without full reforms government being more generous than assumed by us in compensating R&M companies cannot (more…)

Shree Renuka Sugars (SHRS) will pay USD 250 mn (INR 11.5 bn) to acquire 50.34% stake in Equipav, 25% below INR 15.3 bn quoted in February 2010. Balance stake in the venture is to be held by the founding Equipav Group – the Toledo, Tarallo and Vetorazzo families. At the revised amount, SHRS says that the EV of Equipav comes to USD 1,147 mn, translating into an EV/tonne of USD 109.

The international raw sugar price bottomed out (more…)