Kanco Tea & Industries Ltd. Stock Research

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Kanco Tea & Industries Ltd. Detail

Kanco Tea and Industries Limited is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Tea sector.

As per the Company website it has two tea estates namely Mackeypore and Lakmijan. These two together produce about 2 million kilograms of tea annually. The total area under cultivation is 1136.76 hectares.

The tea processing factory at Mackeypore Tea Estate has an installed processing capacity of 2.5 million kilograms of black tea. Apart from Tea it has also taken some Agricultural initiatives as mentioned below

  • Vermicompost – It helps Company produce organic manure so as to minimize usage of chemical fertilizers
  • Soil Conservation – It practices soil and water conservation through vermi composting and soil rehabilitation by planting green crops

Both of the Tea Estates are located in Assam which is one of the largest tea producing state of India.

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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.

Kanco Tea & Industries Ltd. Stock Performance

Kanco Tea Industries Stock Performance
Kanco Tea Industries Stock Performance

It is new listing in market. The company got listed in year 2012 at price of 36 INR. After one year of IPO cooling period at marched part the IPO price and keep on rising slowly. The bull run during 2014 to 2018 helped the stock move beyond 100 and neared 150 mark.

But recent selling did not help the stock and it is only at 25% gain from IPO price. In 6 years 25% gain is not encouraging. But it has also given close to 2.5% dividend at current market price. This will to return provided by Company to investors.

Kanco Tea & Industries Ltd. My Opinion

Kanco tea and Industries limited is in Tea sector. Tea is an evergreen sector. People will continue to drink Tea. It will always have demand.

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There are some consumption themes which have become part of Human nature. But it does not mean Company dealing with them will make money. There are few players in Tea area. One of the Company is from prestigious Tata group of Companies.

It has performed just Ok on stock exchanges. Green Tea is new buzz word in Tea industry. It deals only with Black Tea so it will miss the train.I am not invested in this sector as market is already saturated. The demand for tea will rise slowly only. That is why tea stocks are not moving faster and giving less returns over the years

In case you are interested then 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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