Tea companies' shares gain as price hike likely on high procurement costs

Shares of many listed tea companies in India surged in Wednesday's trade seeing a rise in procurement costs.

Domestic tea prices are expected to rise as tea producers in India are facing an increasing cost rise in tea procurement. FMCG major Hindustan Unilever is continuously monitoring pricing across the product portfolio of HUL, according to a report on Informist. "The company will continue to invest in branding in the tea segment," the report added.

Shares of many listed tea companies in India surged in Wednesday's trade seeing a rise in procurement costs. United Nilgiri Tea Estates share price rose over 6 percent on September 4 to a day's high of Rs 438.95 per share on the NSE. At around 3.30 pm, the share was trading at Rs 420 apiece on the NSE, up 2 percent.

Grob Tea zoomed over 7 percent today to quote at Rs 1,064 per share on the NSE, its day's high. The price settled at Rs 1,025 apiece, rising 3.15 percent.

Jay Shree Tea and Industries Ltd too endured its northbound journey tracking the peers in the segment. The stock hit an intraday high of Rs 141.3 per share on the NSE, rising 6.74 percent. The stock has been gaining for the last three days and has risen 6.34 percent in the period.

Peria Karamalai Tea went up by 2.39 percent intraday to hit Rs 427 while settling flat on the NSE.

Tracking the broader rally in the segment, CCL Products (India) share price hit the new 52-week high of Rs 855 per share on the NSE, up 18.47 percent. It settled at Rs 813.30 percent, up 12.69 percent.

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