ValuePickr Forum

GOODRICKE GROUP -- flag pattern

Attached chart of goodricke group shows a flag pattern breakout. Line chart (which is obtained by only considering closing price without considering high or low) has been shown to reduce the effects of whipsaws.

While a lot of tea stocks have run up strongly this one looks like it is in a beginning phase of upmove which should last a few months or more.

Company is a debt free company with high dividend payout. While currently the ttm PE might look optically expensive, with sustained uptrend in tea prices, this company can vastly improve its performance going forward.

Risk reward looks attractive looking at the techno funda picture.

Since chart is a monthly chart, pattern will take a long time to play out.

disc: bought a small position to keep track of the stock.


Here is the chart of Goodricke. From June 2012 the charts are showing higher tops and higher bottoms which is a bullish sign. After breaking the double top of 138 in June the stock has touched 170 making a new high.The stock is trading higher than its 50 DMA at 145 and 200 DMA at 139. Good price to buy around 150-160 levels. Buy small quantities and keep adding on dips.

Price objective for the stock is 248. As close as told by Hitesh.

Here is the chart:

Goodricke is one of the rare MNC owned tea companies still operating in India n doing quite well. Even on fundamental basis it would be one of the better performing cos. can anybody post ten fundamental Analysis of the co. How is Ulfa n Bodo extremists problem ? Recently Bodo militants killed one of the promising. N fast growing indigenous Muslim tea plant owner . Wonder how is Goodricke tackling this problem?

Goodricke seems to have made a bottom at around 149-150 and given a strong upmove with the stock up about 7-8% at 165.

Would love to have hemant’s views based on his EW on goodricke long term charts and potential targets.

Hitesh bhai is wockhardts chart exhibiting a flag pattern? Thanks in advance

hi hitesh,

don’t have access to bloomberg at the moment. will have a look tomorrow and revert.

yes looks like a flag. support seems strong at 1505 levels. breakout point is a close past 1600 and target could be in the range of 2100.

goodricke

stock bottomed at 103 in dec-11 and was in a major wave 1 uptrend till apr-12 where it peaked at 154. what followed was an abc correction for major 2 which bottomed at 130 in oct-12. then we had intermediate wave 1 to 171 in nov-12. stock corrected from there to 150. this could either be first leg of correction for intermediate 2 or all of it. if its the first case the stock should find support around 145 to finish the final leg of correction. if its case 2 then the stock is in initial stages of intermediate 3 of major 3 which is very bullish and stock should breakout above 170 and touch new highs over the next 6 months. in either case, stock should bottom soon and start trending higher. in any case i would keep a stoploss of 130(bottom of major 2) for all investments. conservative targetsfor major wave 3 would be 221(where major 3 = 0.618x major 1) or 251 where major 1 = major 3.

thank you hemant for the prompt and precise reply

targetsfor

Hi Hemant,

The stock has breached 130 in the previous week. Technically, is it still a hold or all bets are off?

Disc: I hold Goodricke and have a view that tea stocks will start a rally sometime later this year or early next year.

Regards,

Roberto

Hi Hitesh,

Just want to know your views on tea, sugar & cotton stocks. We hadseen a sharp rally in these stocks during 2004-6.Based on your past experience, do you such a rally over a period of next 3 yrs? I agree we are seeing nothing but -ve new on sugar. But maybe this could be start of a new bullrun for sugar.

Regards,

Roberto

Good to see the new look of the online tea shop of Goodricke. It gives a very good feel and attracts one to buy it.

http://www.goodricketea.com/

hi Hitesh,

Seems like this guy tried a shot at it 18 yr high recently and seems interestingly poised. Could you provide your technical view on Goodricke?

Regards,
Roberto el S

Disc: Not invested but interested

Goodricke- Any news on the stock…

I was following it before but then did not see much movement and it seemed like a cyclical stock.
Would request the experts like Mahesh, Hitesh, Dave to provide their expert perspective and thoughts.

The stock has moved up in the last one week. Does anyone have a better understanding of their quarterly results and concall

Market Cap as on 22/11/217: Rs. 875 Crores
About the company
The Company was incorporated in the State of West Bengal, India on 14th June 1977 as a public limited company under the provisions of the Companies Act 1956 (Act). Its main objects per Memorandum & Articles of Association are, amongst other things, to grow, cultivate, manufacture, treat, blend, process, buy, sell and deal in tea in various forms, to carry on the business as planters in all its branches, to manufacture, buy, sell and deal in machinery for processing tea and in connection therewith or acquire by amalgamation, purchase, take-over or otherwise the whole or part of the assets, liabilities and undertaking in India or elsewhere of any other company, body corporate, firm, association of person.
The Company was granted a certificate of entitlement to commence business under the provisions of the Act by the Registrar of Companies, on 27th June 1977.
All the 17 existing tea gardens of Goodricke Group Ltd. were owned by eight Sterling Tea Companies . They had established tea gardens progressively in late 1800s and were carrying on business in tea in India. The sterling companies together owned 17 tea estates in India. 12 estates are in the district of Jalpaiguri and 3 in Darjeeling in the State of West Bengal and 2 in Darrang district in the State of Assam.
The sterling companies are
The Assam-Dooars Tea Co. Ltd The Chulsa Tea Co. Ltd.
Hope Tea Co. Ltd. The Leesh River Tea Co. Ltd.
The Lebong Tea Co. Ltd. The Danguajhar Tea Co. Ltd.
The British Darjeeling Tea Co. Ltd. The Meenglas Tea Co. Ltd.
Pursuant to Section 29(2)(a) of the Foreign Exchange Regulation Act, 1973 (“the FERA”), Reserve Bank of India agreed to grant permission to carry on business to the Sterling companies subject to takeover of the Gardens by an Indian Company to be formed.
Accordingly based on schemes of merger and with the sanction of Calcutta High Court, the 8 Sterling Companies were amalgamated with Goodricke Group Ltd effective 1st January 1978.
Companies Tea Estate (with tea factory) Location
Amgoorie India Ltd. 2 Darjeeling
Stewart Holl (India) Ltd. 4 Assam
Amgoorie India Ltd. 2 Assam
Koomber Tea Co. Pvt. Ltd. 2 Assam
The Company´s core business is the cultivation and production of tea and it is among the top three producers in India.
The Company strives to produce teas of top quality, which are acceptable to the discerning world market. This particularly applies to production from the Darjeeling and Assam gardens.
Likewise, the Company endeavours to care for all its employees by providing medical, educational and welfare facilities way beyond the basic requirements.
The Company´s overall philosophy is excellence in all spheres of its operations.
Products
1.Bulk Teas
CTC and Orthodox teas from the Dooars, Darjeeling and Assam gardens are sold in bulk form packed in paper sacks, jute bags or tea chests.
The quality and popularity of teas from the Group are reflected in the prices realized which rank amongst the top in the Industry.
The marketing channels used for bulk teas include the Public auction System, private and consignment sales, Exports and Direct Sales either in original or blended form.
Darjeeling
The flavoury romance of Darjeeling is best exemplified in the quality that is produced by Group Gardens like Castleton, Margaret’s Hope, Thurbo and Barnesbeg, while the Green Teas of Badamtam are also greatly sought after. Quality buyers from Japan, Europe and the USA keenly compete for these teas.
Assam
Manufacturing expertise coupled with select planting material have ensured that the Groups gardens are amongst the top quality producers. Orthodox teas from gardens like Dejoo, Harmutty and Orangajuli among others, have built up international reputations and are very popular with quality buyers from Germany, UK and the Middle East markets.
Similarly, the finest CTCs are produced in gardens like Amgoorie and Borbam who are renowned for their gutty, bright liquors and attract buyers of premium tea in India and abroad.
Dooars
Group gardens in the Dooars have created a niche for themselves with their full bodied CTC liquors and are strongly competed for. There are not many quality blends that will not have teas from Group gardens like Danguajhar, Leesh River or Jiti, among others, all of whom are extremely popular gardens marks.
2. Instant Teas
Instant Teas-available hot or cold and ready to drink

Instant tea plant - front view
The Goodricke Group developed the concept of instant tea from green leaf at its R &D centre for 4 years before setting up the world’s first integrated Instant Tea Plant at Aibheel Tea Garden in the Dooars. This is a state of the art, computerised automated plant and its establishment in 1994 as an Export Oriented Unit marks a major development in the Indian Tea Industry.
Our Instant tea, available both in Hot Water Soluble and Cold Water Soluble form, is playing an increasingly important role in the world beverage scene and is a source of supply to leading manufacturers of ready to drink products world wide. There is now also an emerging trend for the usage of tea products in the food, confectionery and personal care industries as well.
Our Instant Tea products can be designed to the customers’ specification using raw material ranging from black tea to green leaf from any region. The Plants proximity to the finest quality raw material available in the area itself is a major factor. It was certified and awarded Quality Management Systems on 18th September 2000 and has presently been upgraded to ISO 22000:2005 adhering to the Food Safety Management Systems. A COC or a Chain of Custody system is in place to comply to manufacture of Rainforest Alliance certified products.

INSTANT BLACK TEA

We produce a wide range of high quality Hot water soluble (HWS) and cold water soluble (CWS) Instant Black tea using Black Tea, BMF & Green Leaf as raw material. DARJEELING INSTANT TEA

We produce fine quality hot water soluble (HWS) and cold water soluble (CWS) Darjeeling Instant tea from high grade Darjeeling orthodox tea. Aroma of Darjeeling Tea is kept intact by our unique processing technology. INSTANT GREEN TEA

We produce very high quality Instant Green tea by sourcing the raw material (i,e green tea) from our own group gardens. This instant green tea is rich in “Anti oxidant” and having a pleasant green appearance both in liquor and powder. INSTANT OOLONG TEA

Instant Oolong tea is produced by using oolong tea of Fuzian province of China. This tea is well accepted by the customer for its unique Oolong Flavor and available in three different colour, i.e Dark, Medium and light.
The Instant Tea Plant produces Hot Water Soluble (HWS) and Cold Water Soluble (CWS) teas at its state of the art facility in Aibheel, North Bengal. It is an 100% EOU facility approved by the Falta Export Processing Zone authority under Ministry of Commerce, Govt. of India.
The HWS teas are registered with Patent authorities in India, UK, USA, Kenya & Sri Lanka. The CWS teas are registered with Patent authority in India

  1. Brands
    To satisfy diverse palates and match the expectations of the most discerning consumers, we offer a wide array of consistent, quality teas. These are either Single Estate teas [sourced from a specific Garden] like our Darjeeling range or exclusively blended to enhance every aspect an outstanding cup of tea.
    Darjeeling Tea

Castleton Premium: Blue Caddy
Exclusive Second flush Mucatel produced in limited quantities from May to Mid July. Castleton garden has an unique environment to produce Muscatel tea which is rare in any other garden of Darjeeling. It is a heavy full bodied tea with a musky fruity taste. Because of its uniqueness it is priced at a higher range booked by importers in advance every year.


Castleton Vintage: Black caddy
Exclusive blended whole leaf teas from Castleton gardens. These are teas from 1st and 2nd flush and have a distinct chinary character and flavour.


Barnesbeg-Leaf and Teabags
A 100% organic- cultivated green tea produced without using pesticides and harmful fertilizers.Gardens are Rain Forest Alliance certified and is responsible for maintaining the good health of environment and people who work at the plantations.
Pure Darjeeling Tea- hence flavour is sweeter than other green teas. It has a mellow and light taste and very rich in antioxidants. This pure quality green tea is high on anti oxidants which reduces cell damage, helps to reduce weight and signs of aging. Good for heart and reduces risk of cancer.


Roasted
Unique Darjeeling blend that cannot be mistaken for any other tea. It has a touch of fire and malty taste, can be enjoyed both with milk and without. The liquor is full of aroma and strength and has a deep reddish gloden tint. Roasted is undoubtedly Kolkata’s favourite- Largest selling Darjeeling Tea Brand.


Thurbo
Whole leaf Darjeeling Tea from THURBO, the world famous garden of Mirik Valley. This premium tea is full of flavour and aroma.


Premium Darjeeling
A perfect combination of strength and flavour. It is a Grade of tea- fannings / Golden orange fannings GOF.

Black (CTC) Tea

This is black tea made through the Crush – Tear – Curl [CTC] process invented by Goodricke in 1943, at its flagship garden – Amgoorie. CTC tea has a strong flavour and infuses quickly to give you a brighter, fuller cup of tea.
Khaass
An exclusive Assam black tea created by Goodricke, the world leader in Assam Orthodox Tea production, Khaass is specially blended with 15% Long Leaves and Golden Buds. These Golden Buds give the tea its unparalled aroma and distinct flavour – which you can experience only with a sip of Khaass!


Goodricke Chai
This tea is blended with 8 Special High Quality Clones that enhance the tea quality ensuring MORE CUPS of tea from every pack. These select leaves give outstanding aroma, good strength and an absolutely wonderful tea drinking experience. Available in Leaf & Dust variants.


Zabardast
A strong tea that stimulates you every morning, Zabardast is the obvious choice when looking for a robust & bright cup of tea, brimming with energy! Available in Leaf & Dust variants.

Gift Packs
Badamtam leaf tea
Known across the world for its first flush teas. It is a great gifting idea for those who want to gift the best of Darjeeling Teas.


Season’s 3 in 1
Exclusive quality tea packed according to the harvesting season in Darjeeling. Tea is harvested in Darjeeling in 3 seasons- Spring- 1st flush, Summer- 2 nd Flush and Autumn- 3rd Flush. Each season having its own characteristic in the tea. Ideal gift set for those who want to enjoy all the seasons of Darjeeling.

Latest Developments
The company resumed the operations in Nov 2017 in Darjeeling which was closed because of strikes since July 2017
It entered into an agreement with Godfrey Phillips India Ltd. for acquisition of their brands : Tea City, SC Gold, Symphony, Samovar, SC Premium, Super Cup, Rangoli & Utsav for 20 Crores in Oct 2017

GOODRICKE CAFES
After the successful operation of the Teapot in the DB Mall , for the last 7 years, Goodricke has decided to open another outlet on Bhopal’s own picturesque Boat Club Road ON 27.02.2017.
The cafe is decorated to give a patron the feeling of relaxation and rejuvenation. The beverage menu provides a customer with a plethora of tea options to choose from, from all across the country- while the food and snacks work as the perfect pair for an interesting conversation over a cup of tea. The cafe has been envisaged as a chain of stores
Kolkata


Bhopal

Tea Prices at all time High

Some articles worth going through to understand the price dynamics going forward



Naveen
Please thru some light on why so much down fall on stock price of Goodricke

Any news on Goodricke which is triggering more down fall