Hold Tata Global Beverage: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Tata Global Beverage did an exceptional last quarter. It had a muted top line growth of 4 percent but the tea business did exceptionally well. The coffee business was one which was a little bit of a detrimental to the revenue impact that the company witnessed. They changed the model on the Canadian operations from a distributing model to a direct sales model that is what basically impacted the topline growth of the company."

He further added, "Going forward our own expectations are that the topline will grow by 10 percent over the next two years for Tata Global and the bottomlines should grow by 15 percent. The OPMs over 6.9 percent are a little bit subdued because of higher advertising expenses and that would continue in my opinion going forward as well considering the tough competitive scenario one is looking at and the gross margin expansion should get a little bit subdued."

"However, having said that our own expectations over the next few quarters are looking very robust for a qualitative FMCG companies including Tata Global and our own view is that the stock should do pretty level. Again its global tie ups with Pepsico, Starbucks should aid the earnings growth going forward. So the investor should hold on to the stock and possibly look at good returns happening over this counter over the next 12-15 months."