When thinking about stocks on the NSE, very rarely does one consider Limuru Tea. This is mainly because the share is expensive and fairly dormant. However, at KES 500 per share it is the priciest counter at our bourse. Consequently, we at pesatalk consider it worth observing.

The Limuru Tea Company Limited is a Kenyan company engaged in the growing of green leaf tea. The Company owns 275 hectares of tea land situated four kilometres to the east of Limuru Town. The Limuru Tea Company Limited is an out grower to Unilever Tea Kenya Limited. Unilever Tea Kenya acts as the Company's managing agent in the growing, manufacturing, sales and marketing of its teas. The tea estate green leaf is manufactured in the Unilever Tea Kenya Mabroukie factory from where it is sold mainly for export. The company has 1.2 million shares tradable on the NSE, each with a par value of KES 20.

The avid reader will note that the Limuru Tea Company share has been on our Stocks Watch quite regularly over the last few weeks. This is because over the last month the share price has risen from KES 410 on the 15^th of May to KES 500 as at the close of business yesterday. It is not unusual to observe as much as 8% or 10% increases in share price in one trading day. According to Bloomberg.com the share has a one-to-year return of 56.25%.

The trend the share has followed is shown below:

[caption id="attachment_10432" align="alignleft" width="605" caption="Image sourced from Bloomberg"][/caption]

How much higher can this counter rise? We’ll just have to wait and see.