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Check Before You Invest : Asian Tea & Exports Ltd

BSE: 519532 NSE: ISIN: INE822B01017
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Asian Tea & Exports Ltd belong to?
Asian Tea & Exports Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Asian Tea & Exports Ltd a good quality company?
Asian Tea & Exports Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Asian Tea & Exports Ltd undervalued or overvalued?
Asian Tea & Exports Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Asian Tea & Exports Ltd a good buy now?
Asian Tea & Exports Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd revenue growth is 48.4% for FY-2025 , which is above its 5 year CAGR of -25.3% , indicating faster growth.
Q.2 Gross Profit margin of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.6% for FY-2025 , which is below its 5 year median of 1.1% , indicating decreasing margins.
Q.3 Operating Profit Margin of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.69% for FY-2025 , which is in line with its 5 year median of 0.69% indicating stable margins.
Q.4 Net Profit Margin of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Net Profit Margin is 0.35% for FY-2025 , is below with its 5 year median of 0.77%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 0.6 1.1
Operating Profit Margin 0.69 0.69
Net Profit Margin 0.35 0.77
Q.5 Return on Asset of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Return on Asset is 0.27%, which is below its 5 year historical median of 0.45%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Return on equity is 0.36% for FY-2025 , which is below its historical median of 0.65%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Return on capital employed is 3% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Cash conversion cycle is 156 days, below its historical median of 156 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.76 0.76
ROE 0.36 0.65
ROCE 3 3
Cash Conversion Cycle 156 days 156 days
Q.9 Debt to Equity ratio of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Debt-to-Equity ratio is 0.26 , which is above with the industry average of 0.03 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Asian Tea & Exports Ltd?
Asian Tea & Exports Ltd Debt to cash flow from operations is -1.35 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Asian Tea & Exports Ltd?
Promoters hold 59.42% of the Asian Tea & Exports Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Asian Tea & Exports Ltd vs industry peers?
Asian Tea & Exports Ltd revenue CAGR is -25.32% , compared to the industry median CAGR of 0% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 50.9 13.3
Gross Profit 0.3 0.4
Operating Profit 0.4 0
Net Profit 0.2 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.76 0.5
ROE 0.36 2.03
ROCE 3 3.6
Cash Conversion Cycle (days) 156.06 41

Valuation & price assessment

Q.1 Stock return of Asian Tea & Exports Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 1.2% -1.1% -2.4% -4.5%
Q.3 Valuation ratios of Asian Tea & Exports Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 151.63 20.51 21.75
Price to Book 0.49 0.51 1.55
Price to Sales 0.51 0.16 1.87
EV to EBITDA 22.86 9.88 13.67

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