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:

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Pharma Deal

Pharma Deal

Sun Pharmaceutical wins U.S. approval to buy Ranbaxy  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

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