TATAGLOBAL Trading Buy Target 130

TATAGLOBAL Trading Buy Target 130

Ø Tata Global Beverages Limited (TGBL) is an emerging player in the global beverage market. TGBL was in strong downtrend and witnessed the fall till the mark of 80. After a very long consolidation this counter is showing a sign of take off from the current price. The stock has given a break out on a long term resistance level of 103 and a closed above it that too with above average volumes will indicates a strong up move in coming time. (see the Chart Attached)

Ø Overall trend in the counter is positive which is depicted by formation placed on its daily chart, short term oscillators have given a buy signal.

Ø Recently the company has made a strategic shift from being a local tea company to a global beverage company through various acquisitions and strategic partnerships with global beverage giants like PepsiCo and Starbucks. As a result, the company has made an entry into the top 10 global companies list in the hot drinks category, posing a challenge to global players like Nestle, Unilever and Kraft Foods. company's product portfolio comprises leading global brands like Tetley, Eight O' Clock and local brands like Tata Tea.

Ø Starbucks Corp. and venture partner Tata Global Beverages Ltd. will open their first store in India by August to tap rising coffee consumption in the world’s fastest growing major economy after China. We believe the profitability of the domestic business will see a improvement in the volume growth

Ø Going ahead, new product launches under various strategic alliances would also act as the key triggers for the stock.

Ø Please also see the chart attached what happened to the company Mitra Adiperkasa Tbk and Indonesian company which tied up with star bucks in 2006.

Ø We suggest this counter will be an ideal buy at 110 with target of 130 with SL of 100.