Neelamalai Agro Industries Limited

The Neelamalai Tea & Coffee Estates and Industries Limited, a part of the AVT group, was incorporated in 1943. Its name was changed to Neelamalai Agro Industries Limited in 1986. The company is mainly engaged in Tea plantation, cultivation, Tea manufacturing, sales, and export of Tea. The company has two estates- Katary & Sutton Estates, located in the Nilgiris District in Tamil Nadu, spread across 635.56 Hectares. The factory follows good manufacturing practices and HACCP systems and produces Orthodox and CTC teas. However, currently, the factory manufactures only 100% Orthodox tea. The financials of the company is average, RoNW is 14.25% and at CMP its looks fully priced. Price difference is around 3%, so there is not much arbitrage benefit at CMP. So we give AVOID rating to this buyback and who are holding this stock before announcement of buyback, may participate in buyback depending on market price.