India tea biz adds flavour to Tata Global's Q2 performance; stock rises 9%

Brokerages revise earnings estimates, valuation multiples upwards

A strong July-September quarter (second quarter, or Q2) result led to a 9 per cent surge in the stock price of Tata Global Beverages. In a weak environment, the company reported a healthy showing across its segments. What stood out was the performance of the standalone business (India tea business), with volumes and revenue growing 8 per cent year-on-year, driven by market share gains. 

The ability to maintain volume growth trajectory on sequential comparison, despite a worsening macro picture, was a key positive, according to analysts at JM Financial. The operating profit in the domestic tea business saw a robust 26