Coffee shares doing well at the markets today

Tata Coffee Ltd. and CCL Products Ltd. both hit 1-year highs on news that the government was keen to allow foreign direct investment in the coffee plantations sector.

The Ministry of Commerce and Industry is mulling a proposal to open up the coffee sector to investment from overseas in a bid to improve the technology running the sector as also to get more investment into the company, reported the Economic Times.

For the moment only tea plantation companies are allowed to invite foreign money into their businesses.

As a consequence, Tata Coffee surged 8.6 percent to 103.95 rupees on the National Stock Exchange, where 32 lakh shares were traded compared with the 1-week average of 5.97 lakh shares. The company's market capitalisation has gained 14 percent in one year to 1,784 crore rupees. It trades at 2.2 times book value of 44 rupees.

Smaller rival CCL Products Ltd. jumped 5.6 percent to 245 rupees on a traded volume of 4.14 lakh shares versus an average of 1.67 lakh shares in the past one week. CCL Products enjoys a market capitalisation of 3,078 crore rupees, a jump of 190 percent over 1 year. The share trades at 6.8 times book value of 34 rupees.

(Image credits: Indiatimes)