McLeod Russel India Ltd

McLeod Russel India Ltd (McLeod) is largest tea plantation company in the world. Mcleod , has around 52 tea estates with total capacity of 70mn kg. Tea production is expected to be stagnant with limited land availability. This has led to good realisation and it is expected to futher go up. For short term Kenya's drought problem and political issues has affected production there. McLeod Russel sees a rise of Rs 5-7 for the rest of the year in tea prices.This has led to a recent run in tea stocks. We are positive on Mcleod.