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Tata Coffee Ltd. Stock Analysis

Small Cap
Evaluated by 2848 users | BSE: 532301 | NSE: TATACOFFEE |
Tea/Coffee
Tata Coffee (TCL) incorporated in 1943; is the largest coffee plantation company in Asia. The company owns tea estates located in Coorg, Hassan and Chickmagalur districts of Karnataka and Andhra Pradesh. Company's Timber resources include Rosewood, Silver Oak and other miscellaneous trees. For...

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.
Tata Coffee Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.9%15.57%18.12%17.22%13.77%8.12%14.81%5.98%5.92%6.37%
Value Creation Index NANANANANANANANANANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 401508598651685708779705703719
Y-o-Y Gr. Rt.-26.9%17.7%8.8%5.3%3.3%10%-9.4%-0.4%2.4%
Adjusted EPS (Rs.) 2.94.115.476.025.23.357.072.912.983.34
Y-o-Y Gr. Rt.-41.7%33.1%10.1%-13.6%-35.6%111%-58.8%2.4%12.1%
Book Value per Share (Rs.) 21.5824.4828.0832.3336.3241.7248.0449.2751.9753.57
Adjusted Net Profit 54.176.710211297.162.613254.355.762.4
Net Op. Cash Flow (Rs. Cr.) 23.39191.340.435.778.492.313.341.647.5
Debt to Cash Flow from Ops 5.10.791.22.693.151.410.837.232.111.5
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.
Tata Coffee Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.7%1%-2.6%2.4%
Adjusted EPS 1.6%-8.5%-22.1%12.1%
Book Value per Share 10.68.13.73.1
Share Price 3.1% 3% -13.3% 24%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 14.1817.8320.8219.9415.148.5915.765.975.896.33
Operating Profit Margin (%) 15.8722.9423.4822.5818.4413.3618.747.719.337.82
Net Profit Margin (%) 13.5115.0917.0917.2814.178.8516.967.77.928.67
Debt to Equity 0.290.160.210.180.170.140.090.10.090.07
Working Capital Days 221181182204211278275256248227
Cash Conversion Cycle 12610999110130140131154157159
Entity Percentage Holding
Promoters 57.48%
Institutions 5.60%
Non-Institutions 36.92%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tata Coffee Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tata Coffee Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tata Coffee Ltd.'s performance infers:

Tata Coffee Ltd. earnings have declined by -8.5%, whereas share price has appreciated 3% 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 Tata Coffee Ltd. share prices over the last 10 years. Here is what we found out:

Tata Coffee Ltd. share price has appreciated 6.3% annually over the past ten years.

Tata Coffee (TCL) incorporated in 1943; is the largest coffee plantation company in Asia. The company owns tea estates located in Coorg, Hassan and Chickmagalur districts of Karnataka and Andhra Pradesh.

Company's Timber resources include Rosewood, Silver Oak and other miscellaneous trees. For optimum utilisation of timber resources, the company has entered into manufacturing Plywood and Block Boards with the brand name 'TATA CONSWOOD'.

The company also

Tata Coffee (TCL) incorporated in 1943; is the largest coffee plantation company in Asia. The company owns tea estates located in Coorg, Hassan and Chickmagalur districts of Karnataka and Andhra Pradesh.

Company's Timber resources include Rosewood, Silver Oak and other miscellaneous trees. For optimum utilisation of timber resources, the company has entered into manufacturing Plywood and Block Boards with the brand name 'TATA CONSWOOD'.

The company also engaged in production of Pepper and Cardamom in its Coffee Estates.

The company also carries research and development activities in area of Soil Nutrient Index, Pepper and Cardamom, Quality Analysis of Coffee and Pepper, Analysis of Agro-inputs for quality standards, Crop Diversification and many more.

The company was the first Indian plantation company who was selected as supplier by STAR BUCKS.

In 1998 Asian Coffee and Coffee Lands were amalgamated into the company. Asian coffee produced 2000 Metric Tonnes of Instant Coffee. This production capacity was increased to 2500 Metric Tonnes through contract manufacturing.

The company acquired 534 Hectares coffee estate in Coorg district in 2000-01 which today has grown to 8000 Hectares that produces over 9000 Metric Tonnes of Coffee on per annum basis. The company grows both Robusta and Arabica varieties of Coffee in this estate.

The company has created brands such as 'Coorg 100% Pure Coffee', 'Coorg Double Roast' in R & G segment, 'Tata Cafe', 'Tata Kapi' and also markets tea brand 'Coorg Tea'. The marketing operation of R & G segment was transferred to Tata Tea from April, 2001.

Company is currently supplies Coffee Blends to Barista for its entire range of offerings. The Company conducts its curing processes at Kudige in the state of Karnataka with a production capacity of 22000 Metric Tonnes per annum.

The company has received ISO: 9002 certifications for its quality management and became the first curing industry in Asia to receive this certification.

The company has also entered into joint venture with Russian partners for marketing its Instant Coffee in Russia. Tata Coffee supplies mainly instant coffee to private labels in Russia and is accounting for over 50% of sales for the company. The company has presence in Singapore, Japan and some European countries.

For optimum utilisation of timber resources, the company has entered into manufacturing Plywood and Block Boards with the brand name 'TATA CONSWOOD'.

Awards

The Company also bagged the Gold Medal at the Grand Crus De Café Paris Contest for its Robust Parchment during 2004.

It also bagged four awards for Best Regional Coffee.

Outlook

The company is planning to acquire few brands in Russia in order to expand its presence. Currently the size of the Russian coffee market is 96,000 mt, with 66,000 mt being instant coffee and conventional coffee making up the rest.   

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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