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GROB

Grob Tea NSEI:GROBTEA Stock Report

Last Price

₹963.30

Market Cap

₹1.1b

7D

6.5%

1Y

-27.8%

Updated

06 Oct, 2022

Data

Company Financials
GROBTEA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends2/6

GROBTEA Stock Overview

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

Grob Tea Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Grob Tea
Historical stock prices
Current Share Price₹963.30
52 Week High₹1,444.80
52 Week Low₹709.65
Beta1.88
1 Month Change14.17%
3 Month Change13.72%
1 Year Change-27.85%
3 Year Change235.53%
5 Year Change46.13%
Change since IPO145.11%

Recent News & Updates

May 12
Some Investors May Be Worried About Grob Tea's (NSE:GROBTEA) Returns On Capital

Some Investors May Be Worried About Grob Tea's (NSE:GROBTEA) Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

GROBTEAIN FoodIN Market
7D6.5%0.3%2.0%
1Y-27.8%-1.3%-0.7%

Return vs Industry: GROBTEA underperformed the Indian Food industry which returned -1.3% over the past year.

Return vs Market: GROBTEA underperformed the Indian Market which returned -0.7% over the past year.

Price Volatility

Is GROBTEA's price volatile compared to industry and market?
GROBTEA volatility
GROBTEA Average Weekly Movement7.4%
Food Industry Average Movement5.8%
Market Average Movement5.9%
10% most volatile stocks in IN Market9.2%
10% least volatile stocks in IN Market3.8%

Stable Share Price: GROBTEA is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GROBTEA's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18953,953Subrata Dasguptahttps://www.grobtea.com

The Grob Tea Company Limited cultivates, manufactures, and sells tea in India. The company owns tea gardens under the names Doyang, Dessoie, Kanu, Martycherra, Pathemara, and Teen Ali tea estates located in Assam. Its gardens comprise an area of 4236.07 hectares and 2332.71 hectares of tea plantations.

Grob Tea Fundamentals Summary

How do Grob Tea's earnings and revenue compare to its market cap?
GROBTEA fundamental statistics
Market Cap₹1.12b
Earnings (TTM)₹64.52m
Revenue (TTM)₹996.69m

17.4x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GROBTEA income statement (TTM)
Revenue₹996.69m
Cost of Revenue₹54.89m
Gross Profit₹941.80m
Other Expenses₹877.28m
Earnings₹64.52m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)55.51
Gross Margin94.49%
Net Profit Margin6.47%
Debt/Equity Ratio4.0%

How did GROBTEA perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

4%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GROBTEA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GROBTEA?

Other financial metrics that can be useful for relative valuation.

GROBTEA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA11.5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does GROBTEA's PE Ratio compare to its peers?

GROBTEA PE Ratio vs Peers
The above table shows the PE ratio for GROBTEA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.2x
540647 Ganges Securities
12.8xn/a₹1.1b
530741 Ovobel Foods
13.2xn/a₹941.5m
532102 SBEC Sugar
65.4xn/a₹1.2b
526899 Himalaya Food International
1.3xn/a₹1.2b
GROBTEA Grob Tea
17.4xn/a₹1.1b

Price-To-Earnings vs Peers: GROBTEA is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (23.2x).


Price to Earnings Ratio vs Industry

How does GROBTEA's PE Ratio compare vs other companies in the IN Food Industry?

Price-To-Earnings vs Industry: GROBTEA is good value based on its Price-To-Earnings Ratio (17.4x) compared to the Indian Food industry average (20.7x)


Price to Earnings Ratio vs Fair Ratio

What is GROBTEA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GROBTEA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GROBTEA's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of GROBTEA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GROBTEA (₹963.3) is trading below our estimate of fair value (₹1742.76)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.5%

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.


Discover growth companies

  • Examine whether Grob Tea is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Grob Tea competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Grob Tea performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GROBTEA has high quality earnings.

Growing Profit Margin: GROBTEA's current net profit margins (6.5%) are lower than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: GROBTEA's earnings have grown significantly by 36.2% per year over the past 5 years.

Accelerating Growth: GROBTEA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GROBTEA had negative earnings growth (-74.3%) over the past year, making it difficult to compare to the Food industry average (15%).


Return on Equity

High ROE: GROBTEA's Return on Equity (8.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Grob Tea's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GROBTEA's short term assets (₹504.6M) exceed its short term liabilities (₹170.8M).

Long Term Liabilities: GROBTEA's short term assets (₹504.6M) exceed its long term liabilities (₹30.5M).


Debt to Equity History and Analysis

Debt Level: GROBTEA has more cash than its total debt.

Reducing Debt: GROBTEA's debt to equity ratio has reduced from 7% to 4% over the past 5 years.

Debt Coverage: GROBTEA's debt is well covered by operating cash flow (391.1%).

Interest Coverage: GROBTEA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.21%

Current Dividend Yield

Dividend Yield vs Market

Grob Tea Dividend Yield vs Market
How does Grob Tea dividend yield compare to the market?
SegmentDividend Yield
Company (Grob Tea)0.2%
Market Bottom 25% (IN)0.4%
Market Top 25% (IN)1.6%
Industry Average (Food)1.0%
Analyst forecast in 3 Years (Grob Tea)n/a

Notable Dividend: GROBTEA's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: GROBTEA's dividend (0.21%) is low compared to the top 25% of dividend payers in the Indian market (1.59%).


Stability and Growth of Payments

Stable Dividend: GROBTEA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GROBTEA has only been paying a dividend for 5 years, and since then payments have not increased.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (3.6%), GROBTEA's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (3%), GROBTEA's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

1.5yrs

Average management tenure


CEO

Subrata Dasgupta

no data

Tenure

₹1,421,000

Compensation

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


CEO Compensation Analysis

Subrata Dasgupta's Compensation vs Grob Tea Earnings
How has Subrata Dasgupta's remuneration changed compared to Grob Tea's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

₹65m

Mar 31 2022₹1m₹1m

₹42m

Dec 31 2021n/an/a

₹37m

Sep 30 2021n/an/a

₹66m

Jun 30 2021n/an/a

₹251m

Mar 31 2021₹1m₹1m

₹280m

Dec 31 2020n/an/a

₹271m

Sep 30 2020n/an/a

₹226m

Jun 30 2020n/an/a

₹28m

Mar 31 2020₹1m₹1m

₹16m

Compensation vs Market: Subrata's total compensation ($USD17.40K) is below average for companies of similar size in the Indian market ($USD44.24K).

Compensation vs Earnings: Subrata's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GROBTEA's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: GROBTEA's board of directors are considered experienced (6.9 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.


Recent Insider Transactions

NSEI:GROBTEA Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
29 Mar 22Buy₹3,602,382Shroff Chemicals Pvt. LtdCompany3,500₹1,029.25
29 Mar 22Sell₹3,580,811Strip Commodeal Pvt. Ltd.Company3,500₹1,023.09

Ownership Breakdown

What is the ownership structure of GROBTEA?
Owner TypeNumber of SharesOwnership Percentage
Institutions3,6030.3%
State or Government64,9525.6%
Individual Insiders117,77910.1%
General Public131,76311.3%
Private Companies844,23372.6%

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


Top Shareholders

Top 17 shareholders own 88.66% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
41.69%
Rawalwasia Industries Pvt. Ltd.
484,579₹466.8m0%no data
26.09%
Strip Commodeal Pvt. Ltd.
303,199₹292.1m0%no data
5.59%
Investor Education and Protection Fund (IEPF)
64,952₹62.6m0%no data
4.3%
Diamond Infotech Private Limited
50,000₹48.2m0%no data
3.5%
Pradeep Agarwal
40,660₹39.2m0%no data
3.35%
Mukesh Agarwal
38,920₹37.5m0%no data
1.38%
Vishnu Mittal
16,000₹15.4m0%no data
0.83%
Sanwar Gupta
9,600₹9.2m0%no data
0.61%
Vineet Jindal
7,100₹6.8m0%no data
0.31%
GRD Securities Ltd, Asset Management Arm
3,603₹3.5m0%0.2%
0.3%
Shroff Chemicals Pvt. Ltd
3,500₹3.4m0%no data
0.25%
Saffron Agencies Limited
2,955₹2.8m0%no data
0.18%
Satya Sutodiya
2,100₹2.0m0%no data
0.18%
Pushpa Makhija
2,100₹2.0m0%no data
0.069%
Harashadbhai Patel
800₹770.6k0%no data
0.034%
Indu Sharaf
399₹384.4k0%no data
0.0086%
Priyanka Singhania
100₹96.3k0%no data

Company Information

The Grob Tea Company Limited's 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
  • Implied Market Cap: ₹1.120b
  • 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
  • 700 046
  • India


Listings

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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/06 00:00
End of Day Share Price2022/10/06 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.