Rich brew for McLeod Russel India on strong outlook

McLeod Russel India soared 9.16% to Rs 80.45 at 11:20 IST on BSE, extending previous session's gain after the company official said in a television interview that the firm estimates Rs 750–Rs 770 crore revenue in FY 2009.

In the previous session on Monday, 7 April 2008 the McLeod share closed up 6.12% or Rs 4.25 at Rs 73.70. The interview was broadcasted during market hours on Monday, 7 April 2008.

Meanwhile, the BSE Sensex was down 201.61 points, or 1.28%, to 15555.56 tracking subdued-to-weak trend in Asian stocks.

On BSE, 4.92 lakh shares of the scrip were traded. The stock had an average daily volume of 2.96 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 81.55 and a low of Rs 74 so far during the day. The stock had hit a 52-week high of Rs 98.95 on 3 January 2008 and a 52-week low of Rs 46.45 on 21 January 2008.

The scrip had outperformed the market in the one month to 7 April 2008, gaining 15.97% as against the Sensex's 1.37% fall. It had also outperformed the market in the past three months, slipping 16.15% against the Sensex's 24.51% slide.

The small-cap tea manufacturer has an equity capital of Rs 54.17 crore. Face value per share is Rs 5.

At the current price of Rs 80.45, the scrip trades at a PE multiple of 9.05, based on Q3 December 2007 annualised EPS of Rs 8.88.

Earlier on 22 February 2008, the shareholders of Mcleod Russel India had approved the scheme of amalgamation of The Moran Tea Company India with Mcleod Russel India.

The net profit of McLeod Russel India rose 45.6% to Rs 24.06 crore on 3.5% rise in sales to Rs 190.42 crore in Q3 December 2007 over Q3 December 2006.

McLeod Russel India produces tea in India. The company offers its products under the Williamson and WN brand names