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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)

Basic Stock Data

Last Updated: June 19, 2024, 2:20 pm

Market Cap 194 Cr.
Current Price 389
High / Low433/267
Stock P/E12.1
Book Value 409
Dividend Yield0.69 %
ROCE10.5 %
ROE8.20 %
Face Value 10.0
PEG Ratio1.49

Competitors of United Nilgiri Tea Estates Company Ltd (UNITEDTEA)

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tata Coffee Ltd 6,440 Cr. 345347/23635.8 99.30.87 %9.78 %10.1 % 1.00
Andrew Yule & Company Ltd 2,217 Cr. 45.468.9/22.9 6.940.02 %12.3 %12.9 % 2.00
The Grob Tea Co Ltd 108 Cr. 9331,087/742 6770.21 %1.35 %0.01 % 10.0
Bengal Tea & Fabrics Ltd 110 Cr. 122154/72.3 1220.82 %2.42 %2.33 % 10.0
Rossell India Ltd 1,857 Cr. 493550/315139 78.80.08 %6.43 %4.59 % 2.00
Industry Average9,107.59 Cr331.9145.30212.970.33%7.14%12.81%7.00

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: June 9, 2024, 3:15 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:12 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales32374951575462666366768479
Expenses27293839424249525056657063
Operating Profit581112141313141311111416
OPM %16%21%23%24%25%23%21%21%20%16%15%16%20%
Other Income1112225648557
Interest0000000000000
Depreciation1122333334344
Profit before tax571011141215171415131519
Tax %19%18%23%23%25%25%21%15%23%19%20%19%
Net Profit468910912141112101216
EPS in Rs8.4511.4915.5317.4120.4718.3324.3228.7621.4324.5220.5924.2631.69
Dividend Payout %27%20%17%16%13%15%11%9%13%11%18%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%33.33%12.50%11.11%-10.00%33.33%16.67%-21.43%9.09%-16.67%20.00%
Change in YoY Net Profit Growth (%)0.00%-16.67%-20.83%-1.39%-21.11%43.33%-16.67%-38.10%30.52%-25.76%36.67%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:6%
3 Years:10%
TTM:-6%
Compounded Profit Growth
10 Years:7%
5 Years:-1%
3 Years:2%
TTM:61%
Stock Price CAGR
10 Years:4%
5 Years:1%
3 Years:5%
1 Year:20%
Return on Equity
10 Years:9%
5 Years:7%
3 Years:6%
Last Year:6%

Last Updated: April 15, 2024, 11:19 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital5555555555555
Reserves374147546397112134150161170182193
Borrowings3010000000000
Other Liabilities66868788912121111
Total Liabilities5153616676108125148164177187198208
Fixed Assets12353638383839384344434443
CWIP19000000111232
Investments3322441637376102107127130
Other Assets16152226343023364330342533
Total Assets5153616676108125148164177187198208

Reserves and Borrowings Chart

Asian Tea & Exports Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 779811961189515
Cash from Investing Activity -8-3-6-7-10-7-6-10-4-9-3-13
Cash from Financing Activity -2-5-1-2-2-2-2-2-2-1-1-1
Net Cash Flow-302-0-11-2-13-210

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow5.008.0010.0012.0014.0013.0013.0014.0013.0011.0011.0014.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days332239353614322542274024
Inventory Days11811379128112148151164199247201126
Days Payable106100749413218373758615330
Cash Conversion Cycle4535446916144145152183213188120
Working Capital Days252520342937495772717750
ROCE %12%16%20%19%21%14%14%12%9%9%7%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%12.81%12.25%12.25%12.25%9.26%7.49%7.19%4.89%4.41%4.41%4.41%
Public37.40%37.39%37.96%37.96%37.96%40.94%42.70%43.02%45.32%45.80%45.80%45.80%
No. of Shareholders3,2583,8573,8644,0393,9424,3144,3674,2864,6384,9634,7594,967

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: 408.61

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.

Undervalued: 5.04% compared to the current price 389

Intrinsic Value: 441.86

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: 13.59% compared to the current price ₹389

Last 5 Year EPS CAGR: 8.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (117.50 cr) compared to borrowings (0.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (59.69 cr) and profit (12.85 cr) over the years.
  1. The stock has a low average ROCE of 13.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 45.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 112.83, 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: 19.70%
      • 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: 9.4%)
      • 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: 10.17%)
      • 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): 178.90
      • 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: 12.1 (Industry average Stock P/E: 10.86)
      • 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: N/A
      • 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

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. T G B PintoDirector
Mr. Sankar DattaDirector
Mr. Krishna SrinivasanDirector
Mr. K V SriramDirector
Ms. P Shobhana RaviDirector
Mr. Ranganathan VijayaraghavanIndependent Director
Mr. Sampath Bahukudumbi PillapakkamIndependent Director
Mr. Rajagopal RajkumarDirector

FAQ

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

The latest fair value of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is ₹408.61.

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 194 Cr..

What is the current Stock Price of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) as on 19 June 2024?

The current stock price of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) as on 19 June 2024 is ₹389.

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 433/267.

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 12.1.

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 409.

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 0.69 %.

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

The ROCE of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 10.5 %.

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

The ROE of United Nilgiri Tea Estates Company Ltd (UNITEDTEA) is 8.20 %.

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