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Check Before You Invest : Terai Tea Company Ltd

BSE: 530533 NSE: ISIN: INE390D01011
  |   Sector:  Agriculture & Allied activities   |   Industry:  Tea/Coffee

Snapshot

Q.1 Which industry/sub-sector does Terai Tea Company Ltd belong to?
Terai Tea Company Ltd belongs to the Agriculture & Allied activities sector, operating specifically within the Tea/Coffee segment.
Q.2 Is Terai Tea Company Ltd a good quality company?
Terai Tea Company Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Terai Tea Company Ltd undervalued or overvalued?
Terai Tea Company Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Terai Tea Company Ltd a good buy now?
Terai Tea Company 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 Terai Tea Company Ltd?
Terai Tea Company Ltd revenue growth is -4.7% for FY-2025 , which is below its 5 year CAGR of -2.8% , indicating slower growth.
Q.2 Gross Profit margin of Terai Tea Company Ltd?
Terai Tea Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.4% for FY-2025 , which is in line with its 5 year median of 5.4% , indicating stable margins.
Q.3 Operating Profit Margin of Terai Tea Company Ltd?
Terai Tea Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.98% for FY-2025 , which is in line with its 5 year median of -1.98% indicating stable margins.
Q.4 Net Profit Margin of Terai Tea Company Ltd?
Terai Tea Company Ltd Net Profit Margin is 3.57% for FY-2025 , is in line with with its 5 year median of 3.57%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 5.4 5.4
Operating Profit Margin -1.98 -1.98
Net Profit Margin 3.57 3.57
Q.5 Return on Asset of Terai Tea Company Ltd?
Terai Tea Company Ltd Return on Asset is 2.61%, which is in line with its 5 year historical median of 2.61%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Terai Tea Company Ltd?
Terai Tea Company Ltd Return on equity is 4.28% for FY-2025 , which is in line with its historical median of 4.28%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Terai Tea Company Ltd?
Terai Tea Company Ltd Return on capital employed is 5.78% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Terai Tea Company Ltd?
Terai Tea Company Ltd Cash conversion cycle is 2 days, below its historical median of 18 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.73 0.73
ROE 4.28 4.28
ROCE 5.78 5.78
Cash Conversion Cycle 2 days 18 days
Q.9 Debt to Equity ratio of Terai Tea Company Ltd?
Terai Tea Company Ltd Debt-to-Equity ratio is 0.77 , which is above with the industry average of 0.23 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Terai Tea Company Ltd?
Terai Tea Company Ltd Debt to cash flow from operations is 3.51 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Terai Tea Company Ltd?
Promoters hold 74.18% of the Terai Tea Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Terai Tea Company Ltd vs industry peers?
Terai Tea Company Ltd revenue CAGR is -2.79% , compared to the industry median CAGR of 3.64% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 103 83.7
Gross Profit 5.6 5
Operating Profit -2.1 3
Net Profit 3.7 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.73 0.68
ROE 4.28 4.28
ROCE 5.78 6.8
Cash Conversion Cycle (days) 1.84 46

Valuation & price assessment

Q.1 Stock return of Terai Tea Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 6.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 6.8% 27.5% 12.8% -44.2%
Q.3 Valuation ratios of Terai Tea Company Ltd vs historical?
The current P/E is lower 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 - 5.03 59.40
Price to Book 0.8 0.41 0.99
Price to Sales 0.97 0.40 1.01
EV to EBITDA -56.05 6.93 13.96

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