Avoid coffee, other commodity-driven stocks: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares his views on coffee sector stocks.

ET Now: Café Coffee Day (CCD) is planning to go public. Could that have a rub-off effect on Tata Global Beverages, Tata Coffee and CCL Products? Could it be coffee time once again?

Mayuresh Joshi: Given the commoditise nature of these businesses, one really needs to understand a lot of aspects — how the demand-supply is panning out and the kind of realisations that one really expects from this business verticals itself. Our basic take is that given the commodity nature of their businesses, return ratios remain very wobbly. Therefore, at this juncture, we will give a skip to a lot of these commodity-driven stocks. The numbers have to stabilise which we do not see happening at least for a couple of quarters.