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Diana Tea Company Ltd Stock Analysis

Small Cap
Evaluated by 156 users | BSE: 530959 | NSE: |
Agriculture
Diana Tea Company is a tea-producing company, which was promoted by Late Radheshyam Singhania in 1976. Radheshyam Singhania had bought this company from Nawab Gulam Jabbar and family. Then, the company had only one garden producing 242,000 Kg of tea and a book loss of Rs 37.6 lakhs. The...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Dec'10Dec'11Dec'12Dec'13Dec'14Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.91%3.75%4.18%1.94%3.42%-9.9%4.11%4.38%0.11%2.55%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 62.251.544.940.343.844.952.360.862.361.1
Y-o-Y Gr. Rt.--17.2%-12.8%-10.3%8.8%2.6%16.3%16.4%2.5%-1.9%
Adjusted EPS (Rs.) 4.821.361.820.31.5-5.041.461.53-0.760.32
Y-o-Y Gr. Rt.--71.8%33.8%-83.5%400%-436%NA4.8%-149.7%NA
Book Value per Share (Rs.) 31.4933.4734.9634.5235.736.4341.1830.7629.8229.92
Adjusted Net Profit 7.222.70.52.3-7.62.22.3-1.20.5
Net Op. Cash Flow (Rs. Cr.) 16.1-11.93.813.62.73.614.84.24.3
Debt to Cash Flow from Ops 0.7-14.250.513.432.4713.452.374.515.36
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Diana Tea Company Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -0.2%6.9%5.4%-1.9%
Adjusted EPS -26%-26.6%-39.7%NA
Book Value per Share -0.6-3.5-10.10.3
Share Price -0.3% -2% -13.4% 107.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Dec'14Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 10.012.673.480.572.85-12.753.383.69-1.870.81
Operating Profit Margin (%) 17.39.067.237.556.44-16.166.286.710.54.23
Net Profit Margin (%) 11.633.966.081.125.14-16.814.23.77-1.840.78
Debt to Equity 0.240.240.310.130.170.160.210.250.430.52
Working Capital Days 182263368355294208194154127136
Cash Conversion Cycle 361132001581066026211815
Entity Percentage Holding
Promoters 61.34%
Non-Institutions 38.66%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Diana Tea Company Ltd's performance infers:

Diana Tea Company Ltd earnings have declined by -26.6%, whereas share price has depreciated -2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Diana Tea Company Ltd share prices over the last 10 years. Here is what we found out:

Diana Tea Company Ltd share price has depreciated -1.1% annually over the past ten years.

Diana Tea Company is a tea-producing company, which was promoted by Late Radheshyam Singhania in 1976. Radheshyam Singhania had bought this company from Nawab Gulam Jabbar and family. Then, the company had only one garden producing 242,000 Kg of tea and a book loss of Rs 37.6 lakhs.

The company is among top five producers of tea in the Dooars region. It has four tea gardens, namely Baintgoorie Tea Estate, Goodhope Tea Estate, Ambari Tea Estate and Diana Tea

Diana Tea Company is a tea-producing company, which was promoted by Late Radheshyam Singhania in 1976. Radheshyam Singhania had bought this company from Nawab Gulam Jabbar and family. Then, the company had only one garden producing 242,000 Kg of tea and a book loss of Rs 37.6 lakhs.

The company is among top five producers of tea in the Dooars region. It has four tea gardens, namely Baintgoorie Tea Estate, Goodhope Tea Estate, Ambari Tea Estate and Diana Tea Estate. All its gardens are located in Jalpaiguri. The total capacity of the company is 5 million kg of tea per annum. Out of this, 1.02 million Kg of tea is produced by Diana Tea Estate alone.

In the year 1994 the management of the company desired to share its success with public and accordingly made an initial public issue of its equity shares at a premium of Rs 55 per share which was oversubscribed 2.5 times and listed in four major stock exchanges of the country namely Mumbai, Kolkata, New Delhi and Ahmedabad.

The company supplies tea in markets like Haryana, Rajasthan, Punjab, Uttar Pradesh, Gujarat, Bihar, Maharashtra and Madhya Pradesh. The company exports its product through auction houses like Carrittt Moran & Co., J. Thomas & Co. and Parcon India. The company has entered the packet tea segment to be sold throughout North India through its distributor network. It has also entered the dipping tea bag segment and has installed vending machines in reputed corporate houses of Kolkata.

The registered office of the company is located at ‘Sir RNM House’, 4th floor, 3/B, Lal Bazar Street, Kolkata - 700 001.

Products :

Packet Tea

Diana packet tea is primarily targeted at regular consumers and is available through its network of retailers and wholesalers in the north and north western regions of the country. Available in attractive packing of 250 grams, Diana packet tea comes from the Dooars region of India and its rich taste, strong natural flavor and sensuous aroma is bound to soothe senses. It is extremely popular in Haryana, Rajasthan and Chhattisgarh. The company aims to expand the market for this product by targeting new market segments in the near future.

Bulk Tea

Diana’s bulk tea is primarily marketed by way of public auction system, private sales and direct sales. Its bulk tea is available in packages of 26 kgs and 35 kgs contained in jute boeing, jute laminated bags and wooden chests and is sold all over the country. The tea is packed fresh and symbolizes high quality. It is most popular in Haryana, especially primary grades like BP and BOPSM. Apart from North and North Western regions of India, the tea is increasingly popular in areas of West Bengal, Uttar Pradesh, Gujarat Chhattisgarh, and Maharashtra. Diana Tea Company is constantly seeking expansion by targeting newer regional markets such as Karnataka and Tamil Nadu, where it is gaining momentum in terms of greater popularity and increasing sales.

Dipping Tea Bags

Diana dipping tea bags comes from the regions of Dooars and Assam and is renowned for its rich taste, strong natural flavor and sensuous aroma to soothe senses. Tea bags are available in boxes consisting of 100 tea bags or 25 tea bags respectively. The tea bags are primarily targeted at Indian Railways, corporate offices and retail stores within India.

Wooden Keddies

The company’s product is available in beautifully packed wooden keddies, making it ideal for gifting purposes, complimentary gifts and for general retail sales. Wooden keddies are available in boxes of 250 grams each.

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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