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Check Before You Invest : Norben Tea & Exports Ltd

BSE: 519528 NSE: NORBTEAEXP ISIN: INE369C01017
  |   Sector:  Agriculture & Allied activities   |   Industry:  Tea/Coffee

Snapshot

Q.1 Which industry/sub-sector does Norben Tea & Exports Ltd belong to?
Norben Tea & Exports Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Tea/Coffee segment.
Q.2 Is Norben Tea & Exports Ltd a good quality company?
Norben Tea & Exports Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Norben Tea & Exports Ltd undervalued or overvalued?
Norben Tea & Exports Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - -
Price to Book 6.28 1.01
Price to Sales 16.19 2.20
EV to EBITDA 117.84 14.26
Q.4 Is Norben Tea & Exports Ltd a good buy now?
Norben Tea & Exports Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd revenue growth is 16.3% for FY-2025, which is above its 5-year CAGR of 9.45%, indicating faster growth.

Q.2 Gross Profit margin of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.6% for FY-2025, which is in line with its 5-year median of 5.6%, indicating stable margins.

Q.3 Operating Profit Margin of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.07% for FY-2025, which is in line with its 5-year median of 20.07% indicating stable margins.

Q.4 Net Profit Margin of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Net Profit Margin is -2.31% for FY-2025, is in line with its 5-year median of -2.31%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.6 5.6
Operating Profit Margin (%) 20.07 20.07
Net Profit Margin (%) -2.31 -2.31

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Return on Asset is -0.66%, which is in line with its 5-year historical median of -0.66%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Return on capital employed is 3.93% for FY-2025, which is in line with its 5-year historical median of 3.93%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Return on equity is -1.27% for FY-2025, which is in line with its 5-year historical median of -1.27%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Cash conversion cycle is 36 days, in line with its 5-year historical median of 36 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.29 0.29
ROE (%) -1.27 -1.27
ROCE (%) 3.93 3.93
Cash Conversion Cycle 36 days 36 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Debt-to-Equity ratio is 0.62, which is above the industry average of 0.21, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Norben Tea & Exports Ltd?
Norben Tea & Exports Ltd Debt to cash flow from operations is 9.78, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Norben Tea & Exports Ltd?

Q.1 Promoter shareholding and pledge status of Norben Tea & Exports Ltd?
Promoters hold 38.89% of the Norben Tea & Exports Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Norben Tea & Exports Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Norben Tea & Exports Ltd vs industry peers?
Norben Tea & Exports Ltd revenue CAGR is 9.45%, compared to the industry median CAGR of 3.64%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 16.3 3.6
Gross Profit Growth (%) 0 14.9
Operating Profit Growth (%) 0 0.5
Net Profit Growth (%) 0 8.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.29 0.68
ROE (%) -1.27 4.28
ROCE (%) 3.93 6.8
Cash Conversion Cycle (days) 35.5 46

Valuation & price assessment

Q.1 Stock return of Norben Tea & Exports Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 68.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 68.8% 109.6% 123.4%
Q.2 Valuation ratios of Norben Tea & Exports Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - - 21.84
Price to Book 6.28 1.01 0.99
Price to Sales 16.19 2.20 1.07
EV to EBITDA 117.84 14.26 14.06

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