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Rossell India Ltd. Stock Analysis

Small Cap
Evaluated by 284 users | BSE: 533168 | NSE: ROSSELLIND |
Tea/Coffee
Rossell India, earlier known as Rossell Tea was incorporated in 1975 and is based in Kolkata, India. The company operates as a subsidiary of BMG Enterprises. Rossell Tea manufactures black tea. The company owns tea estates in India. In 2011 the name of the Company was changed from Rossell Tea...

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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.32%11.83%10.19%9.12%3.15%4.53%1.15%2.16%2.94%8.37%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 77.782.8106141140161163198249316
Y-o-Y Gr. Rt.-6.6%27.8%33.6%-0.7%14.8%1.3%21.5%25.4%26.9%
Adjusted EPS (Rs.) 5.185.325.54.810.751.86-0.8-0.180.145.7
Y-o-Y Gr. Rt.-2.7%3.4%-12.6%-84.4%148%-143%NANA3971.4%
Book Value per Share (Rs.) 26.8831.5239.244.2244.1646.1746.2345.9746.1150.67
Adjusted Net Profit 1919.520.217.72.86.8-3-0.70.520.9
Net Op. Cash Flow (Rs. Cr.) 13.721.120.924.3-2.37.3-4.2-3.2-530.2
Debt to Cash Flow from Ops 0.990.452.82.38-23.89.75-19.37-31.06-26.176.46
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.
Rossell India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 16.8%17.6%24.6%26.9%
Adjusted EPS 1.1%50%NA3971.4%
Book Value per Share 7.32.83.19.9
Share Price 14.1% 4.5% 6.6% 133.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.3412.2711.168.681.313.19-1.52-0.40.311.78
Operating Profit Margin (%) 33.8431.1227.5726.4714.2814.762.296.768.3316.98
Net Profit Margin (%) 24.4523.5719.0712.481.974.24-1.81-0.340.26.63
Debt to Equity 0.140.080.410.360.340.420.480.590.771.05
Working Capital Days 94102846688109135138150155
Cash Conversion Cycle 924271938628792103106
Entity Percentage Holding
Promoters 74.91%
Institutions 7.72%
Non-Institutions 17.37%
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 Rossell India Ltd.'s performance infers:

Rossell India Ltd. earnings have grown by 50%, whereas share price has appreciated 4.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

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

Rossell India Ltd. share price has appreciated -0.9% annually over the past ten years.

Rossell India, earlier known as Rossell Tea was incorporated in 1975 and is based in Kolkata, India. The company operates as a subsidiary of BMG Enterprises. Rossell Tea manufactures black tea. The company owns tea estates in India. In 2011 the name of the Company was changed from Rossell Tea Ltd to Rossell India Ltd.

The Company immediately after taking over the management of Dikom, Nokhroy and Borahi T.Es., took effective steps for upgrading the quality further and at present all the Tea

Rossell India, earlier known as Rossell Tea was incorporated in 1975 and is based in Kolkata, India. The company operates as a subsidiary of BMG Enterprises. Rossell Tea manufactures black tea. The company owns tea estates in India. In 2011 the name of the Company was changed from Rossell Tea Ltd to Rossell India Ltd.

The Company immediately after taking over the management of Dikom, Nokhroy and Borahi T.Es., took effective steps for upgrading the quality further and at present all the Tea Estates are well established quality marks in overseas markets. The saleable production at the time of takeover was 2.7 Million Kgs of Black Tea, which after recent corporate restructuring and three successive acquisitions is around 5.0 Million Kgs of Black Tea. At present, the Company owns Dikom, Nokhroy, Nagrijuli, Bokakhat and Romai T.Es., all located in Assam. After corporate restructuring, Borahi T.E. was demerged and transferred to another Company viz. Jyoti Holdings Pvt. Ltd., which Company is no more under the management of Rossell Tea.

The Company diversified into Aviation Industry and created a new division viz. Aerotech Services which became fully operational on and from April 1, 2006. This division acquired 56.25% Share Capital of Sigma Microsystems Pvt. Ltd., Hyderabad, the Company engaged in the business of manufacturing, design and development of Avionics, Electronics and Aviation Equipment, thereby making that Company a Subsidiary of the Company on and from that date

Milestones:

1975 - The Company was incorporated on 10th October, and the certificate of commencement of business was obtained on 15th January, 1976. The objects and activities of the Company are cultivation of Tea, Coffee and Rubber plantations and manufacturing of these products. 1976 The company acquired by way of amalgamation the whole of the undertaking including all properties and liabilities in India of the Jokai (Assam) Tea Co. Ltd., U.K. which was a wholly owned subsidiary of Jokai Tea Holdings, Ltd. U.K. 

1991 - The Company added another 31.73 hectares to its area under tea and expended Rs 303 lakhs for modernization of its plant and equipments. The Company promoted two companies viz., Rossell Granite, a 100% EOU for slabs and tiles, in the State of Tamil Nadu, and another Rossell Telecommunication Pvt. Ltd., for manufacture of electronic and bio-medical equipments. The Company commenced export of shrimps to Japan under the brand name Mermaid.  A plant on lease was taken up for supervision, control of processing of shrimps. The company took all steps to ascertain the feasibility of two projects viz., one for setting up a cement plant in Assam and another for growing mushrooms in the Company's tea estates in Assam. The name of the company has been changed from Jokai Indian, to Rossell Industries Ltd., with effect from 7th March. 

1992 - The Company acquired a tea estate in Assam called `Borahi' comprising 603 hectares of land located in Sibsagar district of Assam. 

1993 - The company suffered a major setback in exports on account of deferment of the committed off takes by Iran government. 

1994 - The Company faced acute problems due to cancellation of Iranian government imports and downward price trends in overseas markets. The Company carried out extension planning in respect of 6.69 hectares besides adding 5.29 hectares to mature tea area. Pursuant to the Scheme of Arrangement effective 1st July Wilton Tea division comprising three tea estates viz., Dikom, Nokhroy & Borahi were transferred to Rossel Tea Ltd. (RTL).  As per the scheme the shareholders of erstwhile Wilton Tea would be allotted 3 equity shares of Rs 10 each of Rossel India for 10 shares held in RTL.

1995 - The Company suffered a setback on account of large crop loss. The situation was further aggravated due to poor market conditions leading to substantial fall in realization.

2011 -The Company's wholly owned subsidiary Company, Rossell Aviation Private Ltd. (Rossell Aviation) entered into an agreement with CAE International Holding Ltd., Canada (CAE) for jointly undertaking the business of providing training solution in projects primarily related to the offset obligations in India for aerospace industry.

2012 -The Company have entered into an agreement with Dhunseri Petrochem & Tea Limited for acquisition of their Namsang Tea Estate, Assam ‘as a going concern’ for an agreed consideration of Rs. 28.29 Crores.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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