MARKET EYE-Starbucks' impact on Tata Global overstated-M Stanley

Mon Nov 19, 2012 10:29am IST

Related Topics

Stocks

   

* Shares in India's Tata Global Beverages fall 2.9
percent after Morgan Stanley downgrades the stock to
"underweight" from "equal weight".
* Tata Global shares have nearly doubled this year, partly on
hopes about its outlook as the joint venture partner of
Starbucks, which has opened three coffee shops in India
this year.  
* However, Morgan Stanley says the contribution from the
Starbucks JV will be limited and recommends booking profits on
Tata Global.
* "The business suffers from poor earnings visibility, weak
brand/market positioning, a lack of pricing power, sluggish
revenue growth and mediocre return ratios," Morgan Stanley says
about Tata Global in a note dated on Monday.
* Morgan Stanley also adds: "Structurally this is one of the
weakest businesses in our coverage universe."

 (manoj.dharra@thomsonreuters.com)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage