As per view of technical analyst Hitendra Vasudeo of stockmechanics.com, Tata Tea is a good stock for delivery with a target between Rs 1047-1622 in three months

The stock can be bought around Rs 958 with strict stop loss of Rs 850. The stock is currently trading at Rs 962 on Bombay Stock Exchange. Tata Tea has been performing well in past couple of months. Expectations from the company are high and returns should be decent over next two quarters. The company may see good results as the demand for tea is expected to pick up.

This delivery based call has been given after analyzing the stock’s previous performance.

Mr. Vasudeo has also suggested that long term investors can also buy the stock and remain invested regardless of the market trend. The long term target for the stock lies between Rs 1622-2552.

Tata Tea is on the brink of acquiring a beverage company in Europe for USD 300 million.

The company has been trying to increase its presence in eastern Europe through acquisitions, since a year now. The group last year bought the assets of a Czech-based tea company Jemca from Alima Znackov Potravina, a food processing company, for GBP 12.4 million, and the trademarks of Vitax and Flosana this year from Premium Foods in Poland for GBP 4.7 million.

Globally, Tata Group`s branded tea market share was up nearly 1% in Great Britain, Australia and Canada but fell marginally in the US and France.

Last year, the company acquired 25% shareholding in Galceau for USD 677 million. It also made acquisitions last year which included Eight O` Clock Coffee Company (EOC), USA from Gryphon Investors for USD 220 million and Joekels of South Africa for GBP 0.9 million.

Great Britain, contributes 33% to its revenues, followed by India with 25%, and the US and Canada with 29%.

The analyst believe that this is positive for the company and in line with their expectations.