Best Tea and Coffee Stocks to Buy in India – List of Top 10 Tea & Coffee Industry Shares of 2024Last Updated Date: Jan 02, 2024
India has been a land of tea lovers for decades now. The newer generation is now moving towards coffee as well.
Tea and coffee today are the most loved beverages in the country. With a population of more than 100 crores today, India has a huge demand for these beverages.
This has resulted in the establishment of several tea and coffee companies in India. Investors could consider investing in this sector to benefit from the growth of this evergreen sector.
With a vast universe of tea and coffee companies available on the Indian stock market, it may become a task to choose the investable ones.
In this article, we shall shortlist the top 10 and best tea and coffee stocks to buy.
Know about the Tea and Coffee Sector in India
India is a large coffee producer. As of 2020-21, India produces 3,42,000 million tonnes of coffee each year.
This accounts for 3.14% of the world’s total coffee production. Furthermore, India is also a large exporter of coffee.
Nearly 70% of the coffee produced in India is exported.
Whereas the balance 30% is consumed locally within India. Thus, India’s coffee export market is significant compared to its domestic consumption.
The revenue earned by India from the export of coffee amounted to USD 719.50 Mn in the financial year 2021.
As the demand for the coffee world over increases, this sector in India has an attractive outlook in the years to come.
The Indian stock market lists several top coffee companies in India. Today, we will detail for you, the top coffee sector stocks to buy.
Top 10 Tea and Coffee Sector Stocks to Buy Today
Check out the Tea and Coffee Share Price & Ranking of Best Tea and Coffee Shares to buy Today or Tomorrow or for Long Term –
We have derived the top tea and coffee manufacturing companies based on their market capitalization.
Accordingly, we have summarized the best coffee shares in India:
We have considered market capitalization as the basis as it is one of the best indicators of both size and valuation of listed companies.
Market capitalization is derived by multiplying the latest market price of the share by the total number of shares that it has outstanding on the exchange.
In our search for the best dairy shares to buy, we have also noted down other key parameters of the ranked stocks.
These include their most recent market price, their price returns over a 6 month and 1-year period as well as the year’s highest and lowest market price.
These have been tabulated for easy reference for investors and readers. We shall now discuss each one of these stocks in greater detail.
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Tata Consumer products – Best Tea Stocks in India
Tata Consumer Products Limited is a listed company incorporated in Kolkata, West Bengal.
It is a fast-moving consumer goods company. Its product portfolio includes both tea and coffee.
Its tea products brand is Tata Tea, Teapigs, Good Earth Tea, Vitax, Joekels, and Tetley.
Details of its coffee products are discussed in Rank 3 coffee stock – its subsidiary Tata Coffee.
It is the world’s second-largest manufacturer of tea products. With a capacity of 184.5 Mn kg of tea annually.
This makes it one of the best tea stocks in India. Its tea and coffee products are sold both domestically and exported overseas.
It is a large-cap company with a market cap of 0.679 lac crores. Its share price today is hovering around Rs.700 mark.
Why Invest in Tata Consumer Products Stocks?
Several reasons make it the top-ranked amongst tea and coffee shares to buy. These include:
- Tata Consumer Products has been a household beverages brand for decades. With a growing population and growing demand for tea and coffee, it has considerable growth potential.
- It continuously innovates through its 3 Research & Development centers. Two of these are in India and one in the UK. Some of its innovations in the past have been – first to introduce dip tea bags, expand the product line to include healthy teas to match changing consumer preferences.
- With a 29% growth in revenue in the last financial year, it has recently been included in NIFTY 50
- It has also triggered a buy signal recently on its technical charts.
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CCL Products (India) – Coffee Stocks in India
Next on the list of best coffee stocks in India is CCL Products (India) Limited. CCL Products was established in 1994.
Its core mission is to produce and sell the best and most world-class coffee. It has over 900 blends of coffee.
These include coffee in several forms such as spray-dried coffee powder, freeze concentrated liquid coffee, roast and ground coffee, coffee beans, and premix coffees.
Its brand names include Xtra, Speciale, Freeze Dried, Malgudi, and This. The company manufactures its products through 4 factories.
Its customer base is over 400, including exports to 90 countries. Its annual revenue is almost Rs.800 crores.
CCL Products has a market capitalization of Rs.56,20.40 crores. Its current listing price is Rs.432.
Why should you invest in CCL products stocks?
- It has a significant global market share – 10% of supply to private labels and 38% market share of exports of instant coffee. With global demand increasing, CCL Products stand to gain.
- It is constantly increasing its production capacity – 10 times over the last 20 years.
- High promoter and FII holding make it a desirable share to have.
- Near double-digit year-on-year growth in EPS.
Tata Coffee – Top Coffee Sector Stocks
Tata Coffee Limited is part of the larger Tata Group. It ranks third in the list of top coffee sector stocks to look out for.
Jamsetji Tata founded this company way back in 1922. Tata Coffee is amongst the largest cultivators and processors of coffee in the world.
Its product portfolio includes the finest Indian Origin Green Coffee Bean, Instant Coffee, and Tea. The company markets these products under its brands.
These are Sonnets by Tata Coffee, Tata Coffee Grand, and Eight’ O clock Coffee. Its annual coffee production is 17 Mn kg coffee annually.
It has 19 tea estates with a total land under cultivation of 8000 hectares.
These are located in the Western Ghats. Apart from coffee, the company produces Orthodox and CTC teas from their tea estates and factories located in the Anamallais region.
Tata Coffee’s current market cap is Rs. 40,80.90 crores and its coffee and tea share price are around Rs.200.
Why should you invest in Tata Coffee stocks?
- International coffee prices are up 20%, making Indian grown coffee more price competitive. Tata Coffee shall gain from this.
- Brazil, the largest coffee producer, is facing supply chain disruptions. This opens up the market for Indian producers such as Tata Coffee.
- Even though it is a short-term investment stock, it has significantly beaten the category index by 20% over 3 years.
- It has recorded a double-digit net profit growth in recent
Andrew Yule – Top Coffee Companies in India
Andrew Yule & Co. Ltd is one of the top coffee companies in India.
It is a Public Sector Undertaking (PSU) that is majorly owned by the Indian Government. Its head office is in Kolkata in West Bengal.
It also has offices all across India. Its primary focus is on producing bulk tea.
It has 5 tea estates in West Bengal – Mim Tea Estate at Darjeeling, Karbala, Banarhat, Chunabhatti, and New Dooars Tea Estates at Dooars.
It also 10 gardens in Assam – Khowang, Bhamun, Hingrijan, Basmati, Desam, Tinkong, Rajgarh, Hoolungoorie, Murphulani, and Bogijan Tea Estates.
Why should you invest in Andrew Yule stocks?
- It has an annual revenue of Rs.330 crores and a net profit of Rs. 22 crores. Thus, it has a very healthy net profit margin.
- It has a high promoter stake, which is a desirable factor for listed companies.
- Being a PSU, it can be considered a fairly stable investment for investors. It will also, therefore, have high dividend prospects.
Rossell India – Dairy Share Price
Rossell India Ltd is a subsidiary of BMG Enterprises Ltd. 1994 is the year of its incorporation. Its main products are both CTC and Orthodox teas.
It began its business with the takeover of two tea estates in Assam – Dikom, and Nokhroy. Today, it has 6 tea estates.
These are Dikom, Nokhroy, Nagrijuli, Romai, Namsang,Kharikatia tea estates. The total land under cultivation is 3000 hectares. It has 6000 employees.
Apart from domestic sales, it also exports its products to several European countries. It has an annual turnover of Rs.325 crores and a net profit of Rs.41 crores.
Rossell India has a market cap of Rs.600.00 crores. Rossell India’s dairy share price is around Rs.160 today.
Why should you invest in Rossell India stocks?
- It is a beneficiary of the Remission of Duties and Taxes on Exported Products (RODTEP) scheme. This will make their export price more attractive and thus their exports will grow.
- It is a growing company – net income has grown 42% over the last 5 years. This is much more than the industry average of 16%.
- It has a consistent dividend track record of over 10 years.
- It is online trading at a fairly low PE, making its valuation attractive.
Goodricke Group – Top 10 Coffee Stocks
Ranked sixth in the top 10 coffee stocks is the Goodricke Group Limited. 1977 is the year of incorporation of this company.
It has its head office in West Bengal. It has a network of 8 companies that manage 18 tea estates. These are located in Darjeeling Assam and Dooars.
It produces both bulk and packaged teas – original and blended black, green, and CTC teas both in original and blended form.
Its products include instant teas Hot water-soluble, cold-water-soluble instant tea, instant black tea, and instant Darjeeling tea.
It was the first in India to develop instant teas. Its production plant is near Aibheel garden. It is located in a 100% EOU zone – Falta Export Processing Zone.
Its annual income is nearly Rs. 900 cr, with its profit, more than doubled from the earlier year to reach Rs.26 cr. The Goodricke group milk share price is nearly Rs.250.
Why should you invest in Goodricke Group stocks?
Let’s look at what is making this an attractive stock for investors today:
- It has clocked a 12.24% compounded annual growth in its 3-year net income.
- It is known for its top-quality products. This makes it command the industry’s best prices.
- Has innovated – pivoted to online model through eCommerce. Its hospitality arm is also offering home delivery now.
- With a PE ratio of around 15, it is fairly valued, making it attractive for Investment.
Williamson Tea – Best Coffee Stocks to Buy
Williamson Tea Assam Ltd is next on our list of best Coffee Stocks to buy. 1977 was when it was incorporated.
It began its operations by taking over 12 sterling tea estates. It is part of the Williamson Magor group.
Its tea products are available on all leading e-commerce portals like Amazon, Flipkart, etc. It has a market cap of Rs.400.00 crores and was last traded at Rs.286 per share.
Why should you invest in Williamson Tea stocks?
- It will receive export benefits under the RODTEP scheme. This can be financially beneficial for the company’s investment.
- It has recently undergone a capital reorganization which is why it is on the path to recovery and good growth.
- This stock is doing well for Intraday Traders for sometime now.
Dhunseri tea – Top Coffee Stocks to Buy
Dhunseri Tea & Industries Limited also features in our top coffee stocks to buy. 1997 is when the company was incorporated with its base in Kolkata.
Its business focus is on the cultivation and sale of loose and packet teas. It sells its product line both in India and exports across the world.
It has some famous brands under which it sells its tea. These brands include Lal Ghora, Kala Ghoda, and Bahipookri. Its annual revenue is Rs. 3.81 Bn.
It has clocked in an impressive net profit of Rs. 44 cr. Dhunseri Tea is a small-cap company with a market cap of Rs.360.60 crores.
It has a good share price of around Rs. 350. Dhunseri Tea can be a good investment choice for you.
Why should you invest in Dhunseri Tea stocks?
- It has high earnings per share (EPS) of 41.63. This indicates it offers very good returns for investors.
- It not only has high-profit margins, but its margins are also continuously increasing.
- The company is making a concerted effort towards reducing its debt burden and has been successful. This will likely increase its profits and its value.
- Its market price is fairly undervalued – trading at a PE ratio of just 7.4 which is less than the industry PE of 20.1.
- These factors make it one of the good coffee companies in India.
Jayshree tea – Coffee Companies in India
Jayshree Tea and Industries Limited is part of the BK Birla group. Founded in 1945 in Kolkata.
It is today the third largest tea producer in the world. It has 22 tea estates. These are located both in India and East Africa.
Not only limited to tea estates, but Jayshree tea also has its tea processing facilities. Its main product portfolio is Darjeeling and Assam teas.
It has underemployment of 19341 employees.
Its core USP is that it has several Indian and world certifications from reputed bodies such as USDA Organic, India Organic, Rainforest Alliance, etc.
It has a revenue of Rs7.47 Bn – with a healthy 57 % gross margin. It is amongst the best tea and coffee companies in India.
Jayshree tea has a market cap of little over Rs.300.00 crores. It’s trading at a share price of over Rs.100.
Why should you invest in Jayshree Tea stocks?
The reasons that make Jayshree tea one of the best tea stocks to buy are:
- It is one of the bigger players in the burgeoning tea sector. The sector has a growth potential of more than 20%. This means Jayshree tea too has good growth potential.
- It has an extremely good cash flow statement. This makes it a very sustainable investment for investors.
- It trades at a low PE making it undervalued and an attractive buy.
Mcleod Russel – Top 10 Coffee Shares to Buy
Mcleod Russel India Ltd is part of the Williamson Magor group. It is the oldest amongst our list of top 10 coffee shares to buy, as it was established in 1869.
It is the largest tea producer in India, with a capacity of 90 million kgs of tea annually. Also, it does this through its 31 tea estates. These estates are located in India, Vietnam, and Uganda.
It has the largest tea estate in the whole world – 1373 hectares.
It also has its blending unit in Assam and Dubai. Its products include various packaged teas like masala chai, black tea, ear grey, breakfast tea, etc.
Its facilities are Tea partnership and ISO certified as well. It has 90,000 employees. It has an annual revenue of Rs. 14.59 Bn.
Mcleod Russell has a market cap of Rs.302.30 crores. This makes it a small-cap company.
It has a low trading share price of just Rs.29.
Why should you invest in Mcleod Russel stocks?
- It has witnessed increasing institutional interest. The large bank, IndusInd Bank has recently picked up a 4.79% stake in Mcleod Russel.
- As it is the largest producer of tea, it has a high undisputed market share. Its huge variety of teas also serves all consumer preferences, making it a popular customer choice.
- It is trading at a low PE ratio, indicating that there is significant value unlocking potential for investors.
Neelamalai Agro – Coffee Sector Stocks to Buy
The first in our honorable mentions list of tea and coffee sector stocks to buy is Neelamalai Agro Limited. 1943 is when it was established.
Its main product is 100% orthodox tea. It operates through the Kattory estate and Sutton estate located in Nilgiris, Tamil Nadu.
The estates are spread over 569.42 hectares and have a production capacity of 19 lacs kg per annum.
It is Rainforest Alliance certified. Its annual revenue is Rs.38 crores, with Rs.8 cr profit.
Its USP is that its tea is from the Nilgiris which gives it a unique misty flavor. Making it a popular consumer choice.
It has also clocked a 23.93% increase in revenue, making it a good choice for investors.
The United Nilgiri – Coffee Companies’ Stocks to Buy
The United Nilgiri Ltd is also popular amongst the tea and coffee companies’ stocks to buy.
As the name suggests, it is located in the Nilgiris. Its tea estates are Allada, Korakundah, Devabetta and Chamraj.
It has been in business since 1922 and exporting its products since 1984. Its products include unique teas such as frost tea and golden tips.
In both bulk and packaged categories. Its high quality makes it command one of the highest prices for tea in the market, thus it can make good profits.
It also has a first-mover advantage, being the first in India to receive ISO certification.
James Warren Tea – Tea Companies Shares to Buy
James Warren Tea Ltd was established in 1850. Its current owner is Govind Ruia. Its tea estates are located in upper Assam.
They are spread across 4000 hectares, namely Balijan, Dea Moolie, Dhoedhaam, Rajah Alli, Thowra, and Zaloni.
It has more than 9500 employees. It produces both CTC and Orthodox tea. Its brand name is ‘Assam 1860’ gourmet tea.
Being the oldest brand name makes it one of the best tea companies shares to buy.
Grob Tea Co – Coffee Companies in India
Dating back to the 19th century, Grob Tea Co Ltd is amongst the oldest tea and coffee companies in India.
It owns Ali Tea Estates in the Cachar district of Assam. The land area is 4236 hectares and it can provide 40 lac kgs of high-quality Assam tea every year.
It has an annual turnover of Rs. 112 crores and a net profit of Rs.28 crores. It is a small-cap company with a market cap of 136.60 crores and a share price of around Rs.1175.
With a recovery of drought-like situation in Assam of earlier years, this company expects to do well in the coming years.
Warren Tea – Dairy Stocks in India
Warren Tea is the last on our list of lucrative dairy stocks in India. It has a 160-year history and began with its first tea estate in Dibrugarh, Assam.
Now it has 7 tea estates in Brahmaputra Valley in Assam. The land coverage is 4000 hectares.
It produces both CTC and Orthodox teas in bulk and packaged form. It sells domestically and internationally.
The USP is its Hatimara estate. This is the only fully clonal tea estate in the world. This indicates how strong the research and development team of the company is.
This sets it apart from all other tea companies.
How to find Coffee stocks for trading?
You now have all information required to shortlist stocks to begin your trade-in coffee stocks.
While we have shortlisted a list of 15 companies, you may not have the capital or desire to invest in so many stocks of the same sector.
We will thus educate you on how you can go ahead to pick and choose from these stocks as well.
You can study the following aspects or parameters of these stocks:
Study its P/E ratio – The price-earnings ratio lets you know whether the company stock is overvalued or undervalued vis-a-vis its fair value.
A stock that has a relatively low P/E especially in comparison to its industry peers is a better option.
Analyze financials – The financial health of a company indicates how strong its fundamentals are.
You can choose stocks that have growing revenue, reasonable profit margins, and a balanced debt-equity ratio.
Track news – From time to time, there may be news bytes released for these companies.
You must be up to date with these to know which companies have a good outlook.
Study research reports – Several trading platforms release periodic equity research reports drafted by their team of experts.
You can rely on these to make your choice.
How to Invest in Tea and Coffee Sector Stocks in India?
Listed stocks today are only traded in dematerialized form. This means you cannot buy physical shares.
You need a Demat account as well as an active trading account to invest in coffee stocks.
By providing all KYC documentation you can open a Demat account with a broking house of your choice.
Different brokers offer different services such as research tools, brokerage plans, customized trading tools, etc.
Once your account has been opened and activated, you must log in with the provided username and password.
You can also change the password as and when you want for added security. Create a watchlist of your selected stocks on the trading portal.
Once your target price is achieved you can go ahead and invest through the desktop platform or the mobile trading app.
Once invested, the stocks will appear in your Demat account on a T+1 basis.
Top Coffee Companies in India – Conclusion
Tea and coffee have always been the most popular beverages in India and around the world. There are so many tea and coffee chain cafes opening up all over the country.
Thus, both the B2C and B2B segment of the tea and coffee industry is seeing healthy growth.
With the dependency on global imports reducing, India’s tea and coffee products are bound to see a rise in demand.
Thus, the top coffee companies in India can be expected to do well in the future making them investable today.
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