Tea stocks rally as prices surge amid supply disruption; should you buy?

Analysts remain cautious on tea-stocks as they believe the companies may witness lower growth in revenues due to loss in production.

Tea prices across the country have continued to surge as massive flood in the north-eastern and southern India and the subsequent supply disruption hit tea inventory. As on August 8, the weekly tea prices for CTC leaf tea -- or Crush, Tear, Curl tea-- at All India level stood at Rs 253.42 per kilogram, up from Rs 243.41 per kg as on August 1, and Rs 212.48 per kg as on July 25. Of this, tea prices in North India saw sharp uptick from Rs 240.42 per kg as on July 11 to Rs 282.38 per kg as on August