B&A Ltd Stock Research

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B&A Ltd Detail

B&A Limited is in portfolio of Subramanian P. He is one of the top investors in India. It is a Tea producing company. The company is currently engaged in the production of CTC tea in its 7 quality tea estates namely – Barasali, Gatoonga, Kuhum, Mokrung, Salkathoni, Samaguri and Sangsua which are located in Golaghat, Jorhat and Sibsagar district of the State of Assam.

As per the Company website it produces around 5.5 million kgs.of tea per annum. B & A Ltd serves only domestic market and most of its produce is distributed through auction sales. As of now it deals with only one product Black Tea.

Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

B&A Ltd Performance

B&A Stock price performance 2018
B&A Stock price performance 2018

In year 2002 the Company was trading at price of 12.The current price of the Company is 190. So absolute return in these 16 years time frame is more than 1480%. In other words your investment grew by 15 times. This is very healthy return for a Tea Company.

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If you see the long term price chart prices have moved slowly towards the higher price with time. There are few spikes in the journey but that is acceptable. The big spikes saw sharp declines. Except those the there is no sharp declines in prices. This means performance of the Company was steady over the years.

The company also gives healthy dividend. At current market price the dividend is close to 1.5% which is very good by any standard. So if you have invested in year 2002 then you have made excellent money in this counter.

B&A Ltd My Opinion

All the analyst have one opinion in Common. They are bullish on Indian Economy. They project that India will continue to grow. The economic growth will increase income of households. This will increase consumption.

Tea is a consumption product. It is widely used across India. There is no slowing down. With rise in population and income the consumption will increase. The sector is good and have steady growth over the years. Till now Tea has become part of Lives and it will continue to be.

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There are some big names in this sector. Tata tea backed by TATA Group of Companies is such a name. B&A have to compete with these companies to grow. One thing is in favor of B&A. Majority of their Tea Estates are situated in Assam which is major producer (No 1) in India.

This can also work against Company. Since all tea estate are situated in one state any natural calamity will impact the Company. But it has proved to be resilient to these issues. There are not many companies in Tea sector. You can compare it with other Tea companies as well and make a decision.

You can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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