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

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

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