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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

United Nilgiri Tea Estates Company Ltd (UNITEDTEA): Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 14, 2024, 9:09 pm

Market Cap 225 Cr.
Current Price 450
High / Low524/292
Stock P/E12.8
Book Value 429
Dividend Yield0.60 %
ROCE10.4 %
ROE8.19 %
Face Value 10.0
PEG Ratio1.52

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for United Nilgiri Tea Estates Company Ltd (UNITEDTEA)

Competitors of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Goodricke Group Ltd 648 Cr. 300357/159 1450.00 %14.8 %25.0 % 10.0
Diana Tea Company Ltd 59.3 Cr. 39.553.8/23.5 48.90.00 %3.15 %0.32 % 5.00
Bengal Tea & Fabrics Ltd 154 Cr. 171227/79.6 1220.59 %1.98 %2.13 % 10.0
Bansisons Tea Industries Ltd 4.34 Cr. 6.868.90/3.34 9.350.00 %2.66 %2.66 % 10.0
B&A Ltd 167 Cr. 539734/29712.1 4960.00 %8.52 %5.55 % 10.0
Industry Average8,651.20 Cr437.9728.68254.140.30%8.63%12.47%6.84

All Competitor Stocks of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales12.8120.6718.7719.0417.1723.4323.2820.0016.9419.3619.1623.6021.89
Expenses13.2716.3114.5217.1216.5818.5919.9316.8814.4814.4614.9319.0419.14
Operating Profit-0.464.364.251.920.594.843.353.122.464.904.234.562.75
OPM %-3.59%21.09%22.64%10.08%3.44%20.66%14.39%15.60%14.52%25.31%22.08%19.32%12.56%
Other Income1.151.551.810.771.250.281.291.671.671.971.491.852.25
Interest-0.010.030.030.030.030.020.030.030.030.030.030.030.02
Depreciation1.210.880.880.870.870.870.891.010.880.880.890.870.87
Profit before tax-0.515.005.151.790.944.233.723.753.225.964.805.514.11
Tax %-47.06%18.60%16.12%22.35%45.74%18.20%19.35%24.53%12.42%18.79%19.17%22.32%25.79%
Net Profit-0.274.074.331.390.513.463.002.842.824.843.894.283.05
EPS in Rs-0.548.158.672.781.026.926.005.685.649.697.798.576.10

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales374951575462666366768484
Expenses293839424249525056657068
Operating Profit81112141313141311111416
OPM %21%23%24%25%23%21%21%20%16%15%16%20%
Other Income112225648558
Interest000000000000
Depreciation122333334344
Profit before tax71011141215171415131520
Tax %18%23%23%25%25%21%15%23%19%20%19%21%
Net Profit68910912141112101216
EPS in Rs11.4915.5317.4120.4718.3324.3228.7621.4324.5220.5924.2632.12
Dividend Payout %20%17%16%13%15%11%9%13%11%18%11%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)33.33%12.50%11.11%-10.00%33.33%16.67%-21.43%9.09%-16.67%20.00%33.33%
Change in YoY Net Profit Growth (%)0.00%-20.83%-1.39%-21.11%43.33%-16.67%-38.10%30.52%-25.76%36.67%13.33%

United Nilgiri Tea Estates Company Ltd (UNITEDTEA) has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:5%
3 Years:8%
TTM:24%
Compounded Profit Growth
10 Years:8%
5 Years:4%
3 Years:13%
TTM:22%
Stock Price CAGR
10 Years:7%
5 Years:12%
3 Years:8%
1 Year:39%
Return on Equity
10 Years:9%
5 Years:7%
3 Years:7%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:42 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital5555555555555
Reserves4147546397112134150161170182199209
Borrowings0100000000000
Other Liabilities686878891212111312
Total Liabilities53616676108125148164177187198217226
Fixed Assets35363838383938434443444344
CWIP0000001112322
Investments322441637376102107127134139
Other Assets15222634302336433034253842
Total Assets53616676108125148164177187198217226

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +798119611895158
Cash from Investing Activity +-3-6-7-10-7-6-10-4-9-3-13-4
Cash from Financing Activity +-5-1-2-2-2-2-2-2-1-1-1-2
Net Cash Flow02-0-11-2-13-2102

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow8.0010.0012.0014.0013.0013.0014.0013.0011.0011.0014.0016.00

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.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days223935361432254227402456
Inventory Days11379128112148151164199247201126131
Days Payable10074941321837375861533040
Cash Conversion Cycle35446916144145152183213188120147
Working Capital Days252034293749577271775075
ROCE %16%20%19%21%14%14%12%9%9%7%8%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters49.79%49.79%49.79%49.79%49.79%49.79%49.79%49.79%49.79%49.79%49.79%49.79%
DIIs12.81%12.25%12.25%12.25%9.26%7.49%7.19%4.89%4.41%4.41%4.41%4.41%
Public37.39%37.96%37.96%37.96%40.94%42.70%43.02%45.32%45.80%45.80%45.80%45.80%
No. of Shareholders3,8573,8644,0393,9424,3144,3674,2864,6384,9634,7594,9674,605

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 18Mar 17
FaceValue10.0010.00
Basic EPS (Rs.)24.3218.34
Diluted EPS (Rs.)24.3218.34
Cash EPS (Rs.)29.6323.63
Book Value[Excl.RevalReserv]/Share (Rs.)232.53203.16
Book Value[Incl.RevalReserv]/Share (Rs.)232.53203.16
Revenue From Operations / Share (Rs.)123.40109.05
PBDIT / Share (Rs.)36.0729.83
PBIT / Share (Rs.)30.7624.54
PBT / Share (Rs.)30.6224.41
Net Profit / Share (Rs.)24.3218.34
NP After MI And SOA / Share (Rs.)23.6018.34
PBDIT Margin (%)29.2327.35
PBIT Margin (%)24.9222.50
PBT Margin (%)24.8122.38
Net Profit Margin (%)19.7016.81
NP After MI And SOA Margin (%)19.1216.81
Return on Networth / Equity (%)10.149.02
Return on Capital Employeed (%)12.9911.85
Return On Assets (%)9.468.44
Asset Turnover Ratio (%)0.520.00
Current Ratio (X)3.715.78
Quick Ratio (X)2.944.92
Dividend Payout Ratio (NP) (%)11.4414.72
Dividend Payout Ratio (CP) (%)9.3311.42
Earning Retention Ratio (%)88.5685.28
Cash Earning Retention Ratio (%)90.6788.58
Interest Coverage Ratio (X)263.90230.73
Interest Coverage Ratio (Post Tax) (X)178.90142.85
Enterprise Value (Cr.)163.28162.76
EV / Net Operating Revenue (X)2.652.99
EV / EBITDA (X)9.0610.92
MarketCap / Net Operating Revenue (X)2.773.33
Retention Ratios (%)88.5585.27
Price / BV (X)1.471.79
Price / Net Operating Revenue (X)2.773.33
EarningsYield0.060.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) as of November 17, 2024 is: 452.43

Calculation basis:

  • 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.

As of November 17, 2024, United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is Undervalued by 0.54% compared to the current share price 450.00

Intrinsic Value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) as of November 17, 2024 is: 490.57

Calculation basis:

  • Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is Undervalued by 9.02% compared to the current share price 450.00

Last 5 Year EPS CAGR: 8.43%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (124.54 cr) compared to borrowings (0.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (62.42 cr) and profit (13.58 cr) over the years.
  1. The stock has a low average ROCE of 13.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 49.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 121.33, which may not be favorable.

Stock Analysis

  • 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 United Nilgiri Tea Estates Company Ltd (UNITEDTEA):
    1. Net Profit Margin: 19.7%
      • 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: 12.99% (Industry Average ROCE: 8.63%)
      • 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. ROE%: 10.14% (Industry Average ROE: 12.47%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 178.9
      • 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.
    5. Quick Ratio: 2.94
      • 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.
    6. Stock P/E: 12.8 (Industry average Stock P/E: 28.68)
      • 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.
    7. Total Debt / Equity: 0
      • 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:

About the Company - Qualitative Analysis

The United Nilgiri Tea Estates Company Ltd. is a Public Limited Listed company incorporated on 09/08/1922 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L01132TZ1922PLC000234 and registration number is 000234. 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. 75.66 Cr. and Equity Capital is Rs. 5.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Plantations - Tea & CoffeeNo.3, Savithri Shanmugam Road, Race Course, Coimbatore Tamil Nadu 641018headoffice@chamrajtea.com
http://www.unitednilgiritea.com
Management
NamePosition Held
Ms. Mallika SrinivasanChairman
Mr. Sankar DattaDirector
Mr. Sampath Bahukudumbi PillapakkamDirector
Mr. Ranganathan VijayaraghavanDirector
Ms. P Shobhana RaviDirector
Mr. Rajagopal RajkumarDirector

FAQ

What is the latest intrinsic value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)?

The latest intrinsic value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) as on 17 November 2024 is ₹452.43, which is 0.54% higher than the current market price of ₹450.00.

What is the Market Cap of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)?

The Market Cap of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 225 Cr..

What is the current Stock Price of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) as on 17 November 2024?

The current stock price of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) as on 17 November 2024 is ₹450.

What is the High / Low of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) stocks in FY 2024?

In FY 2024, the High / Low of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) stocks is 524/292.

What is the Stock P/E of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)?

The Stock P/E of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 12.8.

What is the Book Value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)?

The Book Value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 429.

What is the Dividend Yield of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)?

The Dividend Yield of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 0.60 %.

What is the ROCE of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)?

The ROCE of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 10.4 %.

What is the ROE of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)?

The ROE of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 8.19 %.

What is the Face Value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)?

The Face Value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 10.0.

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 United Nilgiri Tea Estates Company Ltd (UNITEDTEA). 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