Leading tea grower firm McLeod Russel reported widening of its standalone net loss at Rs.235.67 crore in the fourth quarter of the 2015-16 fiscal on higher expenses and financial cost.The Kolkata-based company had posted a net loss of Rs.207.95 crore in the same quarter previous year, it said in a BSE filing.
Moreover, in an interview with a Business Channel, CNBC-TV18, its Chief Financial Officer Mr.Kamal Baheti, said that the Tea company McLeod Russel expects to produce 87 million kilograms of tea at its plantations in India, and 30 million kilograms at its overseas plantations.
He said last year was difficult, but he expected a better performance this year. Baheti expects domestic realisations to imporve by 5 % this year and overseas realisations by 15-20%.
He said the company aimed to export 21-22 million kilograms of tea this year, compared to 13 million kilograms last year.
Also, remember, McLeod Russel is the largest tea plantation company in the world. It prides itself on running a successful business that directly employs over 90,000 people and has an excellent reputation around the world.
Hence, I would suggest the shareholders, to accumulate the scrip on all declines for an increased short term price target of Rs.220.