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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rossell India Ltd

About the Company - Rossell India Ltd

Rossell India Ltd. is a Public Limited Listed company incorporated on 10/06/1994 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L01132WB1994PLC063513 and registration number is 063513. 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. 299.03 Cr. and Equity Capital is Rs. 7.34 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aerospace & DefenseJindal Towers, Block �B�, 4th Floor, Kolkata West Bengal 700017nk.khurana@rosselltea.com
http://www.rossellindia.com
Management
NamePosition Held
Mr. H M GuptaExecutive Chairman & CEO
Mr. R M GuptaWhole Time Director
Mr. N K KhuranaDirector - Finance
Ms. N PalchoudhuriInd. Non-Executive Director
Mr. K KatyalInd. Non-Executive Director
Mr. R BhatnagarInd. Non-Executive Director

Rossell India Ltd. Share Price Update

Share PriceValue
Today₹456.50
Previous Day₹452.25

Basic Stock Data of Rossell India Ltd

Market Cap 1,720 Cr.
Current Price 456
High / Low550/221
Stock P/E129
Book Value 82.3
Dividend Yield0.09 %
ROCE10.1 %
ROE10.3 %
Face Value 2.00

Data Source: screener.in

Competitors of Rossell India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Norben Tea & Exports Ltd 13.0 Cr. 11.016.0/6.72 13.30.00 %5.02 %1.36 % 10.0
United Nilgiri Tea Estates Company Ltd (UNITEDTEA) 186 Cr. 373384/25611.8 3960.75 %7.72 %6.23 % 10.0
Mcleod Russel India Ltd 371 Cr. 35.538.0/16.3 54.40.00 %1.34 %11.1 % 5.00
The Grob Tea Co Ltd 108 Cr. 9311,087/670 7680.21 %4.74 %0.74 % 10.0
Peria Karamalai Tea & Produce Company Ltd (PKTEA) 104 Cr. 334375/237357 5910.15 %0.58 %1.88 % 10.0
Industry Average156.4 Cr336.973.76364.540.22%3.88%4.26%9

Rossell India Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales10191676595845570119976870119
Expenses50778254617267587291806384
Operating Profit5114-16113312-1212476-12835
OPM %50%16%-24%17%35%14%-21%17%40%6%-18%11%29%
Other Income-1117112011111
Interest4433332333234
Depreciation3333333343344
Profit before tax428-2113286-146420-17129
Tax %5%10%-7%10%11%13%13%11%13%13%15%11%15%
Net Profit407-2311256-125360-14124
EPS in Rs10.771.95-6.233.086.851.54-3.371.439.880.09-3.840.356.48

Rossell India Ltd Quarterly Chart

Rossell India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales82106141140161163198249309322299354354
Expenses5677104120137159185228260253254301318
Operating Profit2629372024413215069455336
OPM %31%28%26%14%15%2%7%8%16%22%15%15%10%
Other Income-0154353203-01144
Interest1297767111216101212
Depreciation234101091010912121414
Profit before tax233929612-8-203241333114
Tax %18%22%29%30%21%83%115%-46%42%20%10%12%
Net Profit193020410-1011933302712
EPS in Rs5.108.255.561.092.61-0.360.070.165.058.978.117.263.08
Dividend Payout %8%6%9%46%19%-56%0%0%4%3%4%6%

Rossell India Ltd Profit & Loss Yearly Chart

Rossell India Ltd Growth

Compounded Sales Growth
10 Years:13%
5 Years:12%
3 Years:5%
TTM:8%
Compounded Profit Growth
10 Years:4%
5 Years:201%
3 Years:13%
TTM:-55%
Stock Price CAGR
10 Years:25%
5 Years:46%
3 Years:61%
1 Year:75%
Return on Equity
10 Years:6%
5 Years:10%
3 Years:12%
Last Year:10%

Rossell India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital7777777777788
Reserves160187205203211162161162179209239279303
Borrowings95858557281100130195177153162199
Other Liabilities10182426292629395243496678
Total Liabilities187271294292318277298338433436448514588
Fixed Assets117181197199212174176172166242234250246
CWIP0021268159211959
Investments37616849462118191919193445
Other Assets32292843577796132156164186224287
Total Assets187271294292318277298338433436448514588

Rossell India Ltd Reserves and Borrowings Chart

Rossell India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 212124-27-4-3-528353425
Cash from Investing Activity -9-74-247-185-8-13-82-4-0-40
Cash from Financing Activity -748-3-512191953-33-3314
Net Cash Flow5-5-3-022-31-0-11-1

Rossell India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days27249464641272731334049
Inventory Days607557514421489604582
Days Payable99110939745116106
Cash Conversion Cycle272494646549474448354478528526
Working Capital Days23-17-2710265482106103135161162
ROCE %14%13%13%4%6%-2%2%4%13%15%9%10%

Rossell India Ltd Financial Efficiency Indicators Chart

Rossell India Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters74.91%74.91%74.91%74.91%74.91%74.91%74.91%74.91%74.80%74.80%74.80%74.80%
FIIs7.41%7.29%0.70%0.00%0.47%1.46%1.51%1.61%1.48%1.49%1.48%1.47%
DIIs0.25%0.25%0.38%0.27%0.24%1.24%1.77%1.77%2.29%2.57%3.06%3.15%
Public17.43%17.55%24.01%24.82%24.37%22.39%21.81%21.72%21.42%21.15%20.67%20.58%
No. of Shareholders7,7918,03514,31616,46816,97514,42812,79913,43714,56314,37613,42613,933

Rossell India Ltd Shareholding Pattern Chart

No. of Rossell India Ltd Shareholders

Rossell India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Active Fund9127000.6845.51

Rossell India Ltd ROCE Trend

Rossell India Ltd EPS Trend

Rossell India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 18Mar 17
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)7.488.188.970.07-0.36
Diluted EPS (Rs.)7.388.188.970.07-0.36
Cash EPS (Rs.)10.9811.5712.222.702.04
Book Value[Excl.RevalReserv]/Share (Rs.)76.1567.1458.8545.9446.20
Book Value[Incl.RevalReserv]/Share (Rs.)76.1567.1458.8545.9446.20
Revenue From Operations / Share (Rs.)93.8081.4987.8254.0644.48
PBDIT / Share (Rs.)15.0513.4419.204.151.85
PBIT / Share (Rs.)11.4110.0515.951.52-0.54
PBT / Share (Rs.)8.297.3311.16-0.43-2.15
Net Profit / Share (Rs.)7.338.188.970.06-0.35
NP After MI And SOA / Share (Rs.)7.338.188.970.06-0.35
PBDIT Margin (%)16.0416.4921.857.684.16
PBIT Margin (%)12.1612.3318.152.80-1.23
PBT Margin (%)8.838.9912.70-0.81-4.84
Net Profit Margin (%)7.8110.0310.210.12-0.80
NP After MI And SOA Margin (%)7.8110.0310.210.12-0.80
Return on Networth / Equity (%)9.6312.1815.240.14-0.77
Return on Capital Employeed (%)14.0813.4523.123.11-1.07
Return On Assets (%)5.386.697.540.08-0.47
Long Term Debt / Equity (X)0.050.100.160.050.08
Total Debt / Equity (X)0.560.620.770.550.42
Asset Turnover Ratio (%)0.730.670.000.690.54
Current Ratio (X)1.131.030.870.670.68
Quick Ratio (X)0.390.320.260.230.32
Inventory Turnover Ratio (X)0.670.570.000.840.76
Dividend Payout Ratio (NP) (%)3.983.662.220.000.00
Dividend Payout Ratio (CP) (%)2.662.591.630.000.00
Earning Retention Ratio (%)96.0296.3497.780.000.00
Cash Earning Retention Ratio (%)97.3497.4198.370.000.00
Interest Coverage Ratio (X)4.824.944.292.121.15
Interest Coverage Ratio (Post Tax) (X)3.353.343.071.030.77
Enterprise Value (Cr.)1073.06866.31553.07427.13536.88
EV / Net Operating Revenue (X)3.032.901.722.153.29
EV / EBITDA (X)18.9117.567.8528.0378.97
MarketCap / Net Operating Revenue (X)2.582.391.201.692.87
Retention Ratios (%)96.0196.3397.770.000.00
Price / BV (X)3.182.901.791.992.77
Price / Net Operating Revenue (X)2.582.391.201.692.87
EarningsYield0.030.040.080.000.00

Rossell India Ltd Profitability Ratios (%)

Rossell India Ltd Liquidity Ratios

Rossell India Ltd Liquidity Ratios (%)

Rossell India Ltd Interest Coverage Ratios (X)

Rossell India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rossell India Ltd

Fair Value: ₹1094.50

The stock is undervalued by 140.02% compared to the current price ₹456

*Investments are subject to market risks

Strength and Weakness of Rossell India Ltd

StrengthWeakness
  1. The company has higher reserves (204.62 cr) compared to borrowings (111.46 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (221.38 cr) and profit (19.23 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 7.68 and average Dividend Yield of 8.84%.
  2. The stock has a low average ROCE of 8.42%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 68.17, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 292.42, which may not be favorable.

Should I Buy Rossell India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rossell India Ltd:
    1. Net Profit Margin: 7.81%
      • 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.
    2. ROCE: 14.08% (Industry Average ROCE: 3.88%)
      • 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.
    3. Interest Coverage Ratio (Post Tax): 3.35
      • 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.
    4. Quick Ratio: 0.39
      • 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.
    5. ✗ Stock P/E: 129 (Industry average Stock P/E: 79.76)
      • 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.
    6. ✓ Total Debt / Equity: 0.56
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

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 Rossell India 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