Mcleod Russel share price hits upper circuit, stock jumps 44% in 2 sessions: Here's what investors should know

Mcleod Russel share price: For the second straight session, McLeod Russel India shares hit an upper circuit of 20 per cent to Rs 34.25 per share on both BSE and NSE during Monday’s trading session, after Carbon Resources (P) Ltd bought around 5 per cent stake in the tea company through open market on Friday. 

Carbon Resources (P) Ltd picked 4.95 million equity shares, which translates into a 4.73 per cent stake at a weighted average price of Rs 28.19 apiece on the NSE, according to September 16, 2022, bulk deals data. 

The counter in the last two trading sessions has risen nearly 44 per cent from a level of Rs 23.65, hit on Thursday, September 15, 2022, on the BSE. The stock was trading close to its 52-week high level of Rs 35.45 per share level hit on September 30, 2021. 

The promoters of the company held a 6.25 per cent stake in Mcleod Russel, as of June shareholding pattern data. Individual public shareholders held 67.56 per cent stake out of the 93.75 per cent public holding, while corporate bodies have 14.15 per cent holding in the company, data shows. 

Mcleod Russel is engaged in the business of cultivation and manufacturing tea. It is one of the largest plantations presently consisting of 33 tea estates located in Assam and West Bengal.  

The tea produced is sold in domestic as well as international markets including the United Kingdom and Europe. Its facility also includes two bulk blending units that can blend both 'Orthodox' and Crushed, torn, and curled (CTC) tea varieties. 

The company in its annual report for the financial year 2021-22 said that the overall outlook for 2022-23 for quality tea is positive and the company is likely to benefit in terms of value gain on good quality teas that comprise the bulk of Mcleod Russel's produce.