Mehabe score: 5 G Factor: 5 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 8.
Description
Incorporated in 1895, TGTCL produces black tea of crush, tear and curl (CTC) variety, which it sells in the domestic market through a mix of auction and private sales. The company was taken over by the current management – the Rawalwasia Group in May 2009.Site:GROBTEAMain Symbol:www.nseindia.com
Stock trades at 1290.0, above its 50dma 1070.04. It also trades above its 200dma 957.37. The stock remains bullish on techicals
The 52 week high is at 1434.75 and the 52week low is at 447.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 43.52% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 7.40% over past five years.
-Tax rate seems low
Competition
– The industry trades at a mean P/E of 13.8x. Tata Consumer trades at the industry’s max P/E of 100.8x. GROBTEA trades at a P/E of 22.7x
– Industry’s mean G-Factor is 2.1 while the mean Piotski score is 9.0. GROBTEA has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is -5.3%. The max 1- month return was given by Mcleod Russel: a return of 2.03 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 37.0 cr compared to Rs 51.0 cr for period ended Sep 2020, a fall of 27.5%
Operating Profits reported at Rs 15.0 cr for period ended Sep 2021 vis-vis 33.0 for period ended Sep 2020 .
Operating Margins contracted -2416.5 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 122.17 compared to Rs 4.39 for previous quarter ended Jun 2021 and Rs 281.25 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 92.8 cr for period ended TTM vis-vis sales of Rs 110.28 cr for the period ended Mar 2021, a fall of 18.8%. The 3 year sales cagr stood at 5.2%.
Operating margins shrank to 8.74% for period ended TTM vis-vis 26.96% for period ended Mar 2021, contraction of 1822.0 bps.
Net Profit reported at Rs 6.59 cr for period ended TTM vis-vis sales of Rs 28.02 cr for the period ended Mar 2021, falling 325.2%.
Company recorded a healthy Net Profit CAGR of 67.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 25.19 cr for period ended Mar 2021 vis-vis Rs -7.23 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 46.0% compared to 21.0% over the last 3 Years. – The stock has given a return of 123% on a 1 Year basis vis-vis a return of 26% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of 13% over the last 3 Years. – The compounded profit growth on a TTM basis is -71% vis-vis a compounded profit growth of 147% over the last 3 Years.
Ratios
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 43.52% CAGR over last 5 years – The company has delivered a poor sales growth of 7.40% over past five years.
-Tax rate seems low
