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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of The Grob Tea Co Ltd

About the Company - The Grob Tea Co Ltd

The Grob Tea Company Ltd. is a Public Limited Listed company incorporated on 07/01/1895 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L74110WB1895PLC000963 and registration number is 000963. Currently Company is involved in the business activities of Growing of tea. Company’s Total Operating Revenue is Rs. 92.99 Cr. and Equity Capital is Rs. 1.16 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Plantations - Tea & CoffeeHAUTE STREET, 9th Floor, Kolkata West Bengal 700046grobtea@rawalwasia.co.in
http://www.grobtea.com
Management
NamePosition Held
Mr. P K AgarwalManaging Director
Mr. M K AgarwalNon Executive Director
Mr. N K HarodiaIndependent Director
Mrs. P SinghaniaIndependent Director
Mr. S K AgarwalIndependent Director

The Grob Tea Company Ltd. Share Price Update

Share PriceValue
Today₹944.25
Previous Day₹944.15

Basic Stock Data of The Grob Tea Co Ltd

Market Cap 108 Cr.
Current Price 931
High / Low1,087/670
Stock P/E
Book Value 768
Dividend Yield0.21 %
ROCE4.74 %
ROE0.74 %
Face Value 10.0

Data Source: screener.in

Competitors of The Grob Tea Co Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
United Nilgiri Tea Estates Company Ltd (UNITEDTEA) 186 Cr. 373384/25611.8 3960.69 %7.72 %6.23 % 10.0
Tata Coffee Ltd 6,440 Cr. 345347/19935.8 99.30.87 %9.78 %10.1 % 1.00
Rossell India Ltd 1,720 Cr. 456550/221129 82.30.09 %10.1 %10.3 % 2.00
Peria Karamalai Tea & Produce Company Ltd (PKTEA) 104 Cr. 334375/237357 5910.15 %0.58 %1.88 % 10.0
Norben Tea & Exports Ltd 13.5 Cr. 11.516.0/6.72 13.30.00 %5.02 %1.36 % 10.0
Industry Average62.1 Cr303.9106.72236.380.36%6.64%5.97%6.6

The Grob Tea Co Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales51.0928.3016.5010.9137.0935.889.1217.5944.4827.3112.8820.9629.56
Expenses17.7821.8230.4510.2222.4832.4221.9614.6328.4727.0728.1718.9120.29
Operating Profit33.316.48-13.950.6914.613.46-12.842.9616.010.24-15.292.059.27
OPM %65.20%22.90%-84.55%6.32%39.39%9.64%-140.79%16.83%35.99%0.88%-118.71%9.78%31.36%
Other Income0.070.220.530.630.330.500.810.640.740.461.581.501.17
Interest0.170.030.110.180.160.030.070.150.010.090.180.400.31
Depreciation0.520.570.700.630.590.690.840.630.670.681.210.840.98
Profit before tax32.696.10-14.230.5114.193.24-12.942.8216.07-0.07-15.102.319.15
Tax %0.00%0.00%0.07%0.00%0.00%0.00%-6.65%0.00%0.00%0.00%-20.53%0.00%0.00%
Net Profit32.696.10-14.220.5114.203.24-13.802.8116.08-0.07-18.212.329.15
EPS in Rs281.2552.48-122.344.39122.1727.88-118.7324.18138.35-0.60-156.6719.9678.72

The Grob Tea Co Ltd Quarterly Chart

The Grob Tea Co Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales50.4258.7360.1061.0277.1874.3776.8779.7882.39110.2892.99102.2690.71
Expenses42.3551.2854.0756.7366.7068.4471.4175.4076.2280.5586.9498.3394.44
Operating Profit8.077.456.034.2910.485.935.464.386.1729.736.053.93-3.73
OPM %16.01%12.69%10.03%7.03%13.58%7.97%7.10%5.49%7.49%26.96%6.51%3.84%-4.11%
Other Income0.384.531.751.450.550.570.860.900.601.192.143.424.71
Interest0.530.620.790.830.910.840.390.621.470.600.440.440.98
Depreciation0.901.732.443.463.923.793.342.852.462.322.743.203.71
Profit before tax7.029.634.551.456.201.872.591.812.8428.005.013.71-3.71
Tax %23.93%11.63%15.82%34.48%24.19%10.16%28.96%23.20%41.90%-0.04%17.17%83.56%
Net Profit5.348.503.820.964.691.691.851.401.6528.024.150.60-6.81
EPS in Rs45.9473.1332.878.2640.3514.5415.9212.0514.20241.0735.715.16-58.59
Dividend Payout %3.26%2.73%6.07%24.17%4.95%13.73%12.54%16.57%14.06%1.24%5.59%38.67%

The Grob Tea Co Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)59.18%-55.06%-74.87%388.54%-63.97%9.47%-24.32%17.86%1598.18%-85.19%-85.54%
Change in YoY Net Profit Growth (%)0.00%-114.23%-19.81%463.41%-452.51%73.43%-33.79%42.18%1580.32%-1683.37%-0.35%

The Grob Tea Co Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:6%
3 Years:7%
TTM:-15%
Compounded Profit Growth
10 Years:-20%
5 Years:-21%
3 Years:-30%
TTM:-182%
Stock Price CAGR
10 Years:%
5 Years:16%
3 Years:5%
1 Year:14%
Return on Equity
10 Years:10%
5 Years:12%
3 Years:15%
Last Year:1%

The Grob Tea Co Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1.161.161.161.161.161.161.161.161.161.161.161.161.16
Reserves15.4823.7227.2730.4935.9338.1540.4042.5445.6674.1477.2576.5988.14
Borrowings3.516.942.3914.077.502.734.466.4110.493.363.1211.8814.29
Other Liabilities8.199.429.2511.3813.2412.8514.7118.6814.9314.4817.0117.9819.28
Total Liabilities28.3441.2440.0757.1057.8354.8960.7368.7972.2493.1498.54107.61122.87
Fixed Assets18.5033.7133.2444.6141.6240.3337.2534.8633.3933.6833.9537.7339.58
CWIP1.570.000.000.000.001.603.173.373.734.515.846.828.24
Investments0.220.220.220.222.240.977.076.522.242.475.293.774.18
Other Assets8.057.316.6112.2713.9711.9913.2424.0432.8852.4853.4659.2970.87
Total Assets28.3441.2440.0757.1057.8354.8960.7368.7972.2493.1498.54107.61122.87

The Grob Tea Co Ltd Reserves and Borrowings Chart

The Grob Tea Co Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 5.7711.215.874.676.175.108.75-1.79-7.2325.1912.214.02
Cash from Investing Activity -4.94-15.08-0.33-11.55-1.580.63-9.971.324.68-17.49-10.96-12.51
Cash from Financing Activity -0.862.62-5.6010.57-7.75-5.891.061.052.33-7.97-1.038.08
Net Cash Flow-0.03-1.25-0.063.69-3.17-0.16-0.160.57-0.22-0.280.23-0.41

The Grob Tea Co Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days5.075.721.764.493.693.396.7920.9113.119.177.074.46
Inventory Days
Days Payable
Cash Conversion Cycle5.075.721.764.493.693.396.7920.9113.119.177.074.46
Working Capital Days-19.84-10.25-11.24-7.840.431.47-5.2723.6575.0974.5786.16128.17
ROCE %42.73%24.48%16.89%5.85%15.48%6.14%6.77%5.06%8.15%42.05%6.78%4.74%

The Grob Tea Co Ltd Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

The Grob Tea Co Ltd ROCE Trend

The Grob Tea Co Ltd EPS Trend

The Grob Tea Co Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.2035.72241.0914.1812.01
Diluted EPS (Rs.)5.2035.72241.0914.1812.01
Cash EPS (Rs.)32.7059.33261.0135.3536.52
Book Value[Excl.RevalReserv]/Share (Rs.)668.99674.63647.87402.79375.97
Book Value[Incl.RevalReserv]/Share (Rs.)668.99674.63647.87402.79375.97
Dividend / Share (Rs.)2.002.003.002.002.00
Revenue From Operations / Share (Rs.)879.82800.01948.79708.88686.36
PBDIT / Share (Rs.)63.2170.47266.0858.2945.48
PBIT / Share (Rs.)35.7246.85246.1637.1220.98
PBT / Share (Rs.)31.9443.07240.9724.4515.62
Net Profit / Share (Rs.)5.2035.72241.0914.1812.01
PBDIT Margin (%)7.188.8028.048.226.62
PBIT Margin (%)4.055.8525.945.233.05
PBT Margin (%)3.635.3825.393.442.27
Net Profit Margin (%)0.594.4625.411.991.75
Return on Networth / Equity (%)0.775.2937.213.513.19
Return on Capital Employeed (%)5.016.6836.688.865.22
Return On Assets (%)0.564.2130.082.282.02
Long Term Debt / Equity (X)0.010.000.010.000.00
Total Debt / Equity (X)0.150.030.040.220.14
Asset Turnover Ratio (%)0.990.971.331.171.23
Current Ratio (X)2.332.953.261.351.23
Quick Ratio (X)1.612.162.651.170.94
Inventory Turnover Ratio (X)0.140.240.670.190.15
Dividend Payout Ratio (NP) (%)38.488.390.8214.1016.65
Dividend Payout Ratio (CP) (%)6.115.050.765.655.47
Earning Retention Ratio (%)61.5291.6199.1885.9083.35
Cash Earning Retention Ratio (%)93.8994.9599.2494.3594.53
Interest Coverage Ratio (X)16.7618.6151.274.608.50
Interest Coverage Ratio (Post Tax) (X)2.3810.4347.452.123.24
Enterprise Value (Cr.)88.12104.9782.1638.7750.90
EV / Net Operating Revenue (X)0.861.130.740.470.63
EV / EBITDA (X)11.9912.822.665.729.63
MarketCap / Net Operating Revenue (X)0.821.250.840.360.58
Retention Ratios (%)61.5191.6099.1785.8983.34
Price / BV (X)1.091.491.240.641.06
Price / Net Operating Revenue (X)0.821.250.840.360.58
EarningsYield0.010.030.300.050.03

The Grob Tea Co Ltd Profitability Ratios (%)

The Grob Tea Co Ltd Liquidity Ratios

The Grob Tea Co Ltd Liquidity Ratios (%)

The Grob Tea Co Ltd Interest Coverage Ratios (X)

The Grob Tea Co Ltd Valuation Ratios

Fair Value / Intrinsic Value of The Grob Tea Co Ltd

Fair Value: ₹85.43

The stock is overvalued by 90.82% compared to the current price ₹931

*Investments are subject to market risks

Strength and Weakness of The Grob Tea Co Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.43%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 27.93, which is a positive sign.
  3. The company has higher reserves (47.37 cr) compared to borrowings (7.01 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (78.24 cr) and profit (5.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 100.71 and average Dividend Yield of 8.82%.
  2. The stock has a high average Cash Conversion Cycle of 7.14, which may not be favorable.

Should I Buy The Grob Tea Co Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in The Grob Tea Co Ltd:
    1. Net Profit Margin: 0.59% (Higher values are generally favorable)
      • 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: 5.01% (Industry Average ROCE: 4.95%)
      • 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): 2.38 (Higher values, preferably > 2, are recommended)
      • 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: 1.61 (Higher values, preferably > 1, are recommended)
      • 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 of N/A (Industry average Stock P/E: 99.56)
      • 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: 0.15 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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 The Grob Tea Co 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