Fundamental Analysis of Dhunseri Tea & Industries Ltd
About the Company - Dhunseri Tea & Industries Ltd
Dhunseri Tea & Industries Ltd. is a Public Limited Listed company incorporated on 07/10/1997 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L15500WB1997PLC085661 and registration number is 085661. Currently Company is involved in the business activities of Processing and blending of tea including manufacture of instant tea. Company’s Total Operating Revenue is Rs. 210.52 Cr. and Equity Capital is Rs. 10.51 Cr. for the Year ended 31/03/2022.
INDUSTRY
ADDRESS
CONTACT
Plantations - Tea & Coffee
Dhunseri House, 4A, Woodburn Park, Kolkata West Bengal 700020
Dhunseri Tea & Industries Ltd Profit & Loss Yearly Chart
Dhunseri Tea & Industries Ltd Growth
Compounded Sales Growth
10 Years:
%
5 Years:
4%
3 Years:
2%
TTM:
17%
Compounded Profit Growth
10 Years:
%
5 Years:
%
3 Years:
%
TTM:
-613%
Stock Price CAGR
10 Years:
%
5 Years:
14%
3 Years:
-13%
1 Year:
11%
Return on Equity
10 Years:
%
5 Years:
-2%
3 Years:
-6%
Last Year:
-25%
Last Updated: July 25, 2024, 4:51 am
Dhunseri Tea & Industries Ltd Balance Sheet
Last Updated: July 10, 2024, 4:32 pm
Month
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Sep 2023
Equity Capital
7
7
7
7
7
7
7
11
11
11
Reserves
403
398
695
714
751
819
848
738
687
667
Borrowings
115
105
115
100
96
128
94
112
181
207
Other Liabilities
60
67
167
147
175
177
174
183
245
245
Total Liabilities
586
578
985
968
1,029
1,131
1,122
1,043
1,123
1,130
Fixed Assets
464
439
776
753
768
782
748
625
789
778
CWIP
0
0
32
45
64
84
91
96
91
95
Investments
24
26
35
42
43
122
137
177
54
13
Other Assets
98
112
141
129
153
143
146
146
188
243
Total Assets
586
578
985
968
1,029
1,131
1,122
1,043
1,123
1,130
Dhunseri Tea & Industries Ltd Reserves and Borrowings Chart
Dhunseri Tea & Industries Ltd Cash Flow
Month
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
45
28
45
44
56
6
46
33
20
-83
Cash from Investing Activity
-5
-13
-41
-16
-30
-18
4
-36
-60
23
Cash from Financing Activity
-24
-27
-5
-25
-24
15
-55
5
56
52
Net Cash Flow
16
-12
-1
2
1
3
-5
1
16
-9
Dhunseri Tea & Industries Ltd Free Cash Flow
Month
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
-73.00
-68.00
-58.00
-47.00
-33.00
-109.00
-31.00
-86.00
-191.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
Undervalued: 703.24% compared to the current price 235
Default values used*: Deafault value of 15 for Stock P/E is used
Intrinsic Value: 678.85
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.
Undervalued: 188.87% compared to the current price 235
Default values used*: Deafault value of 15 for Stock P/E is used
Last 5 Year EPS CAGR: -64.04%
*Investments are subject to market risks
Strength and Weakness of Dhunseri Tea & Industries Ltd Stock
Strength
Weakness
The company has higher reserves (656.40 cr) compared to borrowings (130.10 cr), indicating strong financial stability.
The company has shown consistent growth in sales (322.00 cr) and profit (8.30 cr) over the years.
The stock has a low average ROCE of 3.70%, which may not be favorable.
The stock has a high average Working Capital Days of 60.70, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 288.60, which may not be favorable.
Should I Buy Dhunseri Tea & Industries Ltd Share Now?
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Dhunseri Tea & Industries Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
✗ ROE%: -27.03% (Industry Average ROE: 10.70%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
✓ Stock P/E: (Industry average Stock P/E: 106.73)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
✓ Total Debt / Equity: 0.47
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:★☆☆☆☆
FAQ
What is the latest fair value of Dhunseri Tea & Industries Ltd?
The latest fair value of Dhunseri Tea & Industries Ltd is ₹1887.61.
What is the Market Cap of Dhunseri Tea & Industries Ltd?
The Market Cap of Dhunseri Tea & Industries Ltd is 247 Cr..
What is the current Stock Price of Dhunseri Tea & Industries Ltd as on 27 July 2024?
The current stock price of Dhunseri Tea & Industries Ltd as on 27 July 2024 is 235.
What is the High / Low of Dhunseri Tea & Industries Ltd stocks in FY 2024?
In FY 2024, the High / Low of Dhunseri Tea & Industries Ltd stocks is 275/175.
What is the Stock P/E of Dhunseri Tea & Industries Ltd?
The Stock P/E of Dhunseri Tea & Industries Ltd is .
What is the Book Value of Dhunseri Tea & Industries Ltd?
The Book Value of Dhunseri Tea & Industries Ltd is 497.
What is the Dividend Yield of Dhunseri Tea & Industries Ltd?
The Dividend Yield of Dhunseri Tea & Industries Ltd is 1.28 %.
What is the ROCE of Dhunseri Tea & Industries Ltd?
The ROCE of Dhunseri Tea & Industries Ltd is 19.4 %.
What is the ROE of Dhunseri Tea & Industries Ltd?
The ROE of Dhunseri Tea & Industries Ltd is 25.0 %.
What is the Face Value of Dhunseri Tea & Industries Ltd?
The Face Value of Dhunseri Tea & Industries Ltd is 10.0.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Dhunseri Tea & Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE