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:

INTERNAL SECURITY

REUTERS SHOWCASE

Setback For Sahara

Setback For Sahara

Supreme Court defers verdict on Sahara plea to raise more debt on hotels  Full Article 

SpiceJet Crisis

SpiceJet Crisis

SpiceJet says fleet grounded on lack of fuel  Full Article 

Drug Patents

Drug Patents

Novartis sues Cipla over respiratory drug Onbrez   Full Article 

Boost for Tata Steel

Boost for Tata Steel

Tata Steel restarts key iron mines amid shortage  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

India Outlook

India Outlook

ADB trims growth forecasts for developing Asia, says India to grow 5.5 pct in 2014  Full Article 

Real Estate

Real Estate

HDFC to raise $500 mln real estate private equity fund - sources  Full Article 

Banking Sector

Banking Sector

Japan banks to bulk up India presence on improving ties   Full Article 

U.S. Spending Bill

U.S. Spending Bill

Obama signs bill $1.1 trillion government spending bill  Full Article 

Reuters India Mobile

Reuters India Mobile

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