Parag Thakkar of HDFC Securities told CNBC-TV18, "Tata Coffee is a cyclical trade no doubt about it. We were discussing Balrampur Chini at around Rs 65 but I also recommended profit booking at around Rs 110-115 and the rally is extending further. Now the weather patterns, for example in coffee I was reading that Brazil is expected to have excess rainfall. So, there will be some crop losses in coffee. To play that Tata Coffee remains a very good play.""The stock has not done anything in last one year. It is a Tata Group company and the coffee estates which they have are actually priceless in my view and market cap is just Rs 1700 crore and trading at just 15 PE multiple. Both Arabica and Robusta Coffee prices have rallied around 15-20 percent since February. So, from April-June results you will see the numbers. So, I would like to now concentrate more on tea or coffee rather than sugar because sugar has already rallied significantly," he added."In tea we have seen that largest tea producer of the world is Mcleod Russel which is our Indian company. Of course it is a very fragmented industry. So, Tata Coffee is one and McLeod Russel is the other. However, you have to trade in them, this is not a long term investment kind of stock, this is not a secular buy. It is a weather pattern story or demand or supply triggering this move. So, you have to be careful in this move and buy good companies," he said.
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