Top Tea and Coffee Stocks in India: What You Must Know About Them?

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Top Tea and Coffee Stocks in India: What You Must Know About Them?

Coffee Industry in India

India is a country that is well known for its production of spices around the world. But one more thing which makes it unique and stands on the global production platform is its tea and coffee industry. India stands tall in the list of top 10 coffee-producing countries in the world, and in the year 2020, it has the country delivered 3% of the global output. In addition to this, the Indian coffee industry is booming because of its high-quality production, which leads to a high premium in the international markets. 

There are two types of coffee producers in India, the first one being Arabica and the second being Robusta. Robusta manufacturing accounts for 72% of the total production in India, while the remaining accounts for Arabica. Also, the local consumption of coffee does not have a significant impact on Indian coffee production because most of it is mainly exported from India. 

Tea Industry in India 

India right now is the second largest producer of Tea globally, and due to its solid geographical indications, it is able to produce some of the finest tea, which cannot be grown in any other part of the world. According to the previous survey, which took place in 2018, around 6.73 lakh hectares of area are used for cultivating tea in India. 80% of the total tea produced is consumed in the domestic market, and the remaining 20% is exported out of the country. In the 2020 calendar, we saw 1,257.52 million Kgs of tea production, and in the next financial year, which is 2020-2021, the total production was 1,283 million Kgs. 

How is Coffee Different From Tea?

Both tea and coffee are known for their health benefits. Traditionally tea is known for inducing relaxation, and coffee is known to provide energy along with brainpower in the morning. For those who are looking for a healthy drink from these two, then the tea is the way to go. Coffee, on the other hand, has made a bad reputation due to its chemical composition. Too much caffeine can lead to migraine and nausea. Tea has been an integral part of the traditional medical industry. Coffee only has one thing, which makes it likable. For all the other things, Tea is a clear winner as it boasts relaxation and has fewer side effects than two. 

Top Tea and Coffee Stock In India

Tata Consumer Products

Tata Consumer Products Ltd(formerly Tata Global Beverages Ltd) holds the second position as the most significant player in the brand tea industry in the world. Tata Global Beverages focuses on branded natural beverages such as tea, coffee, and water. 60% of the total revenue of this company comes from the market outside India and more. Tata also has a joint venture with Tata Starbucks to own and operate Starbucks Cafe around India. In recent years the company has won multiple awards in different sectors as in 2021, Tata Gluco Plus grabbed the award of Blue Elephant at Kyroorius Creative Awards 2021 for the best branding content for the fiction films category. 

  • Market Cap:- 71,250 Crores
  • Dividend Yield:- 0.79
  • Sector PE:- 71.40
  • Shareholdings:- 34.72% Promoter, 25.33% FII, 14% DII, 25.95% Public.
  • Revenue March 2022:- 12425 Crores
  • Net Profit 2022:- 1078 Crores

CCL Products (India) Ltd.

This company is engaged in the production, distribution, and trading of coffee. Its main business of coffee it does in India, Vietnam, and Switzerland. It has made its name in the coffee market in the world by two means, the first being Spray Dried and the second Freeze Dried. The company works continuously to update these two with the latest technologies so the production, distribution, and trading cost is minimal. The full form of CCL is Continental Coffee Limited, and it was formed on March 22nd, 1961. In 2019 - 2020 CCL was incorporated and became a wholly owned subsidiary of the company in order to start the agglomeration and packing project at Kuvvakolli Village. 

  • Market Cap:- 6,403 Crores
  • Dividend Yield:- 1.04
  • Sector PE:- 71.40
  • Shareholdings:- 46.26% Promoter, 25.59% Public, 22.34% DII, 5.8% FII, 0.01% Others.
  • Revenue March 2022:- 1462 Crores
  • Net Profit 2022:- 204 Crores

Rossell India Ltd 

Rossell India Ltd has some of the most diverse interests, which are in the fields of Tea, Aviation, and Hospitality. It was incorporated in the year 1994 under the name Rossell Tea Ltd. Also, in the same year, the company took over Dikom Nokhroy and Borahi Tea Estates which are present in the states of Assam under the management of Rossell Industries Ltd. On September 2011, the company's wholly-owned subsidiary company Rossell Aviation Private Ltd, came up with the agreement with CAE International Holding Ltd Canada (CAE) in order to jointly undertake the business of helping in training solutions in projects primarily related to the offset obligations in India for the Aerospace Industry. 

  • Market Cap:- 1,030 Crores
  • Dividend Yield:- 0.11
  • Sector PE:- 71.40
  • Shareholdings:- 74.91 Promoter, 21.81% Public, 1.51% FII, and 1.7%DII
  • Revenue March 2022:- 299 Crores
  • Net Profit 2022:- 29 Crores

(All the above data is as of 26th October 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Best Tea And Coffee Stocks In India

Given below are the top 10 tea and coffee stocks in India that you should know about. These ten stocks cover the majority of the tea and coffee production in India, so they are quite influential as well.

Company NameMarket Cap Sector PE
Tata Consumer Products71250 Crores71.40
CCL Products (India) Ltd.6403 Crores71.40
Rossell India Ltd 1030 Crores71.40
B and A Ltd. 90 Crores71.40
Kanco Tea and Industries Ltd.43 Crores71.40
Terai Tea Co Ltd.46 Crores71.40
James Warren Tea Ltd105 Crores71.40
Tyroon Tea Company Ltd.33 Crores71.40
Jay Shree Tea and Industries Ltd.272 Crores71.40
Longview Tea Company Ltd.8 Crores71.40

(Data as of 26th October 2022.)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Wrapping Up

So these were some of the best tea and coffee stocks in India. You can invest in these stocks to have good returns. But before you do, make sure you have checked the business strategy of the company along with its previous year's performance in the stock market. 

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed. 

  • Are coffee stocks rising?

  • Which tea company in India is the biggest?

  • Is investing in coffee stocks a good idea?

  • What is the future of Indian tea and coffee stocks?

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