NSEI:GROBTEA

Stock Analysis Report

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Executive Summary

The Grob Tea Company Limited cultivates, manufactures, and sells tea in India. More Details


Snowflake Analysis

Flawless balance sheet with outstanding track record.

Share Price & News

How has Grob Tea's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GROBTEA is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GROBTEA's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

-12.4%

GROBTEA

2.8%

IN Food

2.1%

IN Market


1 Year Return

6.6%

GROBTEA

21.4%

IN Food

7.0%

IN Market

Return vs Industry: GROBTEA underperformed the Indian Food industry which returned 21.4% over the past year.

Return vs Market: GROBTEA matched the Indian Market which returned 7% over the past year.


Shareholder returns

GROBTEAIndustryMarket
7 Day-12.4%2.8%2.1%
30 Day20.5%2.5%9.1%
90 Day-26.5%1.7%9.3%
1 Year7.0%6.6%23.4%21.4%9.0%7.0%
3 Year-9.2%-10.4%38.3%33.7%6.7%1.5%
5 Yearn/a159.1%145.8%53.5%42.0%

Long-Term Price Volatility Vs. Market

How volatile is Grob Tea's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Grob Tea undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GROBTEA (₹596) is trading below our estimate of fair value (₹6849.32)

Significantly Below Fair Value: GROBTEA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GROBTEA is good value based on its PE Ratio (3.1x) compared to the IN Food industry average (13x).

PE vs Market: GROBTEA is good value based on its PE Ratio (3.1x) compared to the Indian market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GROBTEA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GROBTEA is good value based on its PB Ratio (0.8x) compared to the IN Food industry average (1.1x).


Next Steps

Future Growth

How is Grob Tea forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.0%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Grob Tea has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Grob Tea performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GROBTEA has high quality earnings.

Growing Profit Margin: GROBTEA's current net profit margins (22.2%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: GROBTEA's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: GROBTEA's earnings growth over the past year (406.2%) exceeds its 5-year average (23.9% per year).

Earnings vs Industry: GROBTEA earnings growth over the past year (406.2%) exceeded the Food industry 12.4%.


Return on Equity

High ROE: GROBTEA's Return on Equity (27.2%) is considered high.


Next Steps

Financial Health

How is Grob Tea's financial position?


Financial Position Analysis

Short Term Liabilities: GROBTEA's short term assets (₹688.2M) exceed its short term liabilities (₹238.4M).

Long Term Liabilities: GROBTEA's short term assets (₹688.2M) exceed its long term liabilities (₹17.4M).


Debt to Equity History and Analysis

Debt Level: GROBTEA's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: GROBTEA's debt to equity ratio has reduced from 28.3% to 6.1% over the past 5 years.

Debt Coverage: GROBTEA's debt is well covered by operating cash flow (424.4%).

Interest Coverage: GROBTEA's interest payments on its debt are well covered by EBIT (39.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Grob Tea current dividend yield, its reliability and sustainability?

0.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GROBTEA's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.54%).

High Dividend: GROBTEA's dividend (0.34%) is low compared to the top 25% of dividend payers in the Indian market (2.14%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GROBTEA has been paying a dividend for less than 10 years.

Growing Dividend: GROBTEA has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (1%), GROBTEA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average board tenure


CEO

Subrata Dasgupta

no data

Tenure

₹1,217,000

Compensation

Mr. Subrata Dasgupta serves as the Chief Executive Officer of The Grob Tea Company Limited.


CEO Compensation Analysis

Compensation vs Market: Subrata's total compensation ($USD16.49K) is below average for companies of similar size in the Indian market ($USD50.36K).

Compensation vs Earnings: Insufficient data to compare Subrata's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Pradeep Agarwal
MD & Director11.67yrs₹3.65m3.5%
₹ 23.5m
Indu Sharaf
Executive Directorno data₹2.42m0.034%
₹ 231.6k
Mukesh Agarwal
Non-Executive Director11.67yrs₹30.00k3.35%
₹ 22.5m
Purushottam Bhide
Non-Executive & Independent Director6.5yrs₹25.00kno data
Priyanka Singhania
Independent Director5.5yrs₹25.00k0.0086%
₹ 57.9k
Sanjay Agarwal
Non-Executive & Independent Director4.5yrs₹35.00kno data

6.5yrs

Average Tenure

51yo

Average Age

Experienced Board: GROBTEA's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Grob Tea Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Grob Tea Company Limited
  • Ticker: GROBTEA
  • Exchange: NSEI
  • Founded: 1895
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹673.163m
  • Shares outstanding: 1.16m
  • Website: https://www.grobtea.com

Number of Employees


Location

  • The Grob Tea Company Limited
  • Haute Street
  • 9th Floor
  • Kolkata
  • West Bengal
  • 700046
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GROBTEANSEI (National Stock Exchange of India)YesEquity SharesININRJul 2016

Biography

The Grob Tea Company Limited cultivates, manufactures, and sells tea in India. The company owns five tea gardens under the names of Doyang, Dessoie, Kanu, and Teen Ali tea estates located in the belt of As...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 12:14
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.