Angel Broking maintains a 'BUY' on Tata Tea with a 12-month target price of Rs 850 as they continue to remain positive on the long term prospects of the tea sector in general and Tata Tea in particular.Tata Tea witnessed a decline of 25.2% in its PAT for Q4FY2006 mainly on account of higher taxation during this quarter and higher other income component in the year-ago quarter.The tea major managed to post good profits from operations as compared to a loss incurred during the corresponding period of previous fiscal primarily on account of lower staff cost.However, for the full year FY2006 the company's net profit grew by 45% on an income growth of 9.16% due to lower operating expenses and higher exceptional income.The consolidated net profits grew by a sharp 38.8% due to lower operating expenses, financial cost and higher exceptional income. The company has reported a rise in its world wide branded tea business.
