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Tata Global Beverages Ltd.

Mid Cap

Evaluated by 2898 users |

BSE

: 500800 |

NSE

: TATAGLOBAL |

Tea/Coffee

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Consolidated basis
The valuation guidance of this company is based on Consolidated basis.
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Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
10 Year X-Ray
MoneyWorks4me Colour Coding
Value Creation To be investment worthy, a company has to create a shareholder value in excess of its cost of capital employed. VCI (Value Creation Index) shows how efficient has the company been in doing this.
Value Creation Index: Colour Rating Guide
  • >0.25 : Very Good
  • 0 to 0.25 : Somewhat Good
  • <0: Not Good
 Mar'04Mar'05Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13
Return on Capital Employed
The return on capital employed gives a sense of how well a company is using its money to generate returns.
9.68%10.43%11.23%9.7%8.55%5.17%7.18%5.03%5.99%6.28%
Value Creation Index
The difference between ROCE and WACC as a Proportion of WACC reveals the extent of value created by a company.
Ie. (ROCE-WACC)/WACC
ROCE is Return on Capital Employed
WACC is Weighted Average Cost of Capital
0.290.060.02-0.10-0.26-0.49-0.27-0.57-0.52NA
Growth Parameters Growth Parameters help gauge a company's growth in the past 10 years. A value creating company needs to grow at a sustainable pace to continue creating value.
For Net Sales and EPS Growth Rate
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
For Debt To CFO
  • 0 to <1.5 : Very Good
  • 1.5 to <3 : Somewhat Good
  • >3 or <0: Not Good
Net Sales (Rs. Cr.)
Net Sales is calculated by deducting excise duty, sales tax and other such deductible indirect taxes from the gross sales of a company.
3,0503,0413,1074,0254,3104,8485,7836,0036,6407,351
Y-o-Y Gr. Rt.--0.3%2.1%29.6%7.1%12.5%19.3%3.8%10.6%10.7%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
3.594.325.215.436.53.546.253.785.345.93
Y-o-Y Gr. Rt.-20.3%20.6%4.2%19.7%-45.5%76.6%-39.5%41.3%11.1%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
22.7325.6726.934.5554.2258.1459.4563.2773.1577.08
Adjusted Net Profit Adjusted Net Profit is a measure of company's profitability after accounting for all costs and adjusting for one time events. 201243293321402219387234330367
Net Op. Cash Flow (Rs. Cr.)
This refers to the amount of cash a company generates from the revenues less operating expenses.
43236842251251517414054.4279173
Debt to Cash Flow from Ops
Debt to CFO (Cash Flow from Operations) conveys the number of years it will take for a company to repay its debt, given the cash generated from operations.
CFO: It is the amount of cash generated by the company through its core business operations without looking at the impact of its capital structure. It indicates whether the company is able to generate sufficient cash from its operations to maintain and run its operations.
4.164.444.038.945.0713.9612.8719.163.288.03
CAGR
The Growth rate helps you understand how the company has performed over different time frames.
CAGR Colour Code Guide
CAGR Colour Code Guide
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales
Net Sales is calculated by deducting excise duty, sales tax and other such deductible indirect taxes from the gross sales of a company.
10.3%11.3%8.3%10.7%
Adjusted EPS
Adjusted Earning per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
5.7%-1.8%-1.7%11.1%
Book Value per Share
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
14.57.395.4
Key Financial Parameter The key financial ratios show the growth and sustainability of the Value Creation Index.
Performance Ratios: Colour Rating Guide
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
Debt to Equity Colour Rating Guide
  • 0 to 1 : Very Good
  • >1 to 2 : Somewhat Good
  • >2 or <0: Not Good
Return on Equity (%)
Return on Equity shows the amount of net profit generated as a percentage of shareholders equity. 
ROE measures a company's profitability over the money shareholders have invested. 
15.9316.9818.9917.3214.496.1910.496.097.757.83
Operating Profit Margin (%)
Operating Profit Margin shows how much profit a company makes (before interest payment and taxes) on sales. It is advisable to look at the change in a company’s operating margin over time and compare the company's yearly or quarterly numbers to those of its competitors.
15.1717.1117.5516.915.8413.6812.0110.329.7210.5
Net Profit Margin (%)
NPM (Net Profit Margin) is the ratio of profit, net of taxes and interests to sales. It is advisable to look at changes in a company’s NPM over time and to compare them with the competitor’s NPM.
6.788.139.488.3317.767.226.744.536.116.35
Debt to Equity
This ratio indicates the ratio of equity to debt the company employs to finance its operating assets.
1.411.131.122.240.780.680.490.270.20.29
Working Capital Days
This is the number of days that a company will take to convert its working capital into revenue.
101103109101138207176136139141
Cash Conversion Cycle
Cash Conversion Cycle is a company's net working capital (creditors, debtors and inventory) expressed in terms of days
43412486814324450
What do we look at?
Management Assessment: An assessment of the trustworthiness of the management based
on 5 important parameters. These parameters are colour coded as Green (Very Good),
Orange (Somewhat Good) and Red (Not Good)
Percentage Holding
35.10%
35.72%
27.52%
1.66%

Pledged *43.5534.4034.3934.3031.9932.1232.1332.1332.1318.7218.7218.7418.7418.7418.7418.7418.740.000.005.30
*  Pledged shares as % of Promoter's holding (%)

The 10 YEAR X-RAY analysis of Tata Global has been done considering its consolidated financials.

Over the last 10 years, the company’s consolidated net sales have grown only at 7.91%. While on a standalone basis, the company’s sales have grown at 10.17% .Tata Global Beverages has kept on adding new subsidiaries in different countries and has entered new markets. The company has acquired major ... Read more

The 10 YEAR X-RAY analysis of Tata Global has been done considering its consolidated financials.

Over the last 10 years, the company’s consolidated net sales have grown only at 7.91%. While on a standalone basis, the company’s sales have grown at 10.17% .Tata Global Beverages has kept on adding new subsidiaries in different countries and has entered new markets. The company has acquired major brands and 90% of the total sales of the company come from these brands. However, all these brands are present in the developed markets which are established and the growth rate of this industry is not that high. All this has impacted sales and net sales of the company on consolidated basis are growing at a considerably slower rate.

The operating profit of the company has shown a declining trend in the last 10 years. The Company’s OPM had shown good growth from FY04 to FY08 and then it has declined post FY08 owing to increase in raw material prices. Raw material prices worldwide have tripled since 2006. Though there is a gradual reduction in the depreciation and interest cost of the company over the years, reduced operational efficiency has hampered NPM. The Company was not able to fully pass on these price rises to its consumers. The company also has to spend considerable amount on advertising and selling and distribution expenses to ensure the success of their brands in a highly competitive market.

The company’s operating cash flows have decreased considerably from Rs.140 Cr in FY10 to Rs.53 Cr in FY11 due to increased inventory and receivables. This figure recovered to Rs. 276 Cr. in FY12.

BVPS growth has also slowed down over the last 3 years after good growth before that owing to an average 62% reinvestment of profits. Return on Invested Capital (ROIC) which indicates efficiency of management in utilising funds has also been low and the 6 year average stands at 6.94%.

The Debt to Net Profit ratio has improved over the last 2 years as the company has repaid some proportion of the debt it had raised by selling one of its subsidiaries, Energy Brands Inc. to Coca Cola Co. The interest payments have gradually come down as a result of its reduced debt.

The company has managed a good cash conversion cycle from FY08. However the past 4 years have seen huge rise in raw material prices, increasing the inventory days. The company’s bargaining power has decreased with its receivable days increasing and payable days reducing. The cash conversion cycle of the company has also taken a hit in this period.

Considering all these factors, the 10 year X-ray analysis of Tata Global Beverages Ltd is Red (‘Not Good’)

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