Hemang Jani's view on Tata Global

Tata Global is diversifying from pure commodity kind of a business into a global play through its tie-up with PepsiCo, says Hemang Jani, Sr Vice President of Sharekhan.

Jani told CNBC-TV18, "We think that Tata Global. It is diversifying from pure commodity kind of a business into a global play through its tie-up with PepsiCo wherein they will be able to market the health drinks and other beverages globally."
He further added, "The company also has a 58% stake in Tata Coffee and Tata Coffee has tied up with Starbucks to rollout their coffee outlets. So we think that the current valuations with Tata Global is getting would expand because of its entry into high margin business. It may take a while for a company to start reporting numbers etc but we think that there is a scope for a PE expansion because of its new ventures and that is why we like the stock." Disclosure: It would be safe to presume that I personally and my company have interest in the above stock.