X

Tata Coffee Ltd Stock Analysis

Small Cap
Evaluated by 2914 users | BSE: 532301 | NSE: TATACOFFEE |
Tea/Coffee

Tata Coffee, tracing roots to 1922, is one of the largest integrated Coffee cultivation and processing companies in the world and the largest corporate producer of Indian Origin Pepper. With the utmost emphasis on sustainability and traceability, the company...

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 3.8% 5.3% -2.5% 64.9%
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 6.26%
Non-Institutions 36.25%
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 5.3% 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 2.1% annually over the past ten years.

Tata Coffee, tracing roots to 1922, is one of the largest integrated Coffee cultivation and processing companies in the world and the largest corporate producer of Indian Origin Pepper. With the utmost emphasis on sustainability and traceability, the company produce some of the finest Indian Origin Green Coffee Bean, Instant Coffee, Pepper and Tea. Being one of the leading players in the B2B Instant Coffee industry, the company’s assets include plants at

Tata Coffee, tracing roots to 1922, is one of the largest integrated Coffee cultivation and processing companies in the world and the largest corporate producer of Indian Origin Pepper. With the utmost emphasis on sustainability and traceability, the company produce some of the finest Indian Origin Green Coffee Bean, Instant Coffee, Pepper and Tea. Being one of the leading players in the B2B Instant Coffee industry, the company’s assets include plants at Toopran (Telangana) and Theni (Tamil Nadu). These plants produce Freeze Dried, Agglomerated, Spray Dried Coffees and other coffee mixes. The company is also home to some of the finest Indian Origin Pepper, intercropped amongst Coffee in its own estates. Along with these, its tea estates and factories in the Anamallais region also produce certified Orthodox and CTC Teas.

Tata Coffee is a part of the Tata Group. Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising over 100 independent operating companies. The Group operates across enterprise and social sectors in 6 continents, with a mission To improve the quality of life of the communities it serve globally, through long-term stakeholder value creation based on Leadership with Trust.

Business area of the company

The company is into the business of the finest Indian-origin green coffee beans, instant coffee and tea. It is also the largest corporate producer of Indian-origin pepper, intercropped with coffee in its estates.

Products

  • Instant Coffee (Freeze-dried coffee, Spray-dried coffee, Agglomerated coffees, Coffee mixes)
  • Green Beans (Micro-Lots, Washed Arabica, Washed Robusta, Monsooned, Organic and certified)
  • Pepper (TGSEB, TGEB and MG1 (11.75, 11.5 and 10) grades of black pepper and A1, A2 and A3 grades of white pepper)
  • Tea (CTC tea, orthodox, Green, Silver tips, Green speckles)

Awards

2013-14

  • The R&G Unit at Kushalnagar has bagged the best Roaster Award in the India International Coffee Festival (IICF) held in the current calendar year.
  • The Company has won awards as the best exporter of Coffee to the Far East Russia, CIS Countries, USA and Canada at the Indian Coffee Export Awards.

2014-15

  • Best Robusta Specialty coffee (Robusta Kaapi Royale, Organic Robusta and Peredenia) from the Devaracadoo Estate
  • Best Specialty Robusta (Robusta Kapi Royal, Organic Robusta and Peredenia) from Devaracadoo Estate
  • Second Best Specialty Robusta (Robusta Kapi Royal and Peredenia) from Valparai Estate
  • Second Best Specialty Arabica (MNEB, S.795) from Ubban Estate
  • Best Arabica from Coorg region from the Sunticoppa Estate
  • Best Arabica from Manjarabad region from the Ubban Estate (Bhagya Division)
  • Best Arabica from the Anamallais from the Valparai Estate
  • Best Robusta from Bababudangiris from the Mylemoney Estate (Thirumayee Division)
  • Best Robusta from the Coorg region from Yemmigoondi Estate (Siddapur Division)
  • Best Robusta from Anamallais from the Valparai Estate
  • Silver for Exhibitor Award in Most Innovative Design
  • Silver in Roaster Award for R&G unit at Kushalnagar, Karnataka
  • CII South region - 3 Star Rating in Environment Health & Safety for Instant Coffee units at Theni and Toopran

2015-16

  • The Theni Unit won the CII - ITC Sustainability Awards 2015 on Environment Management, as well as a Commendation for Significant Achievement.
  • The Company bagged two awards at the 12th Golden Leaf India Awards - 2016 which has been instituted by the Tea Board and United Planters' Association of Southern India (UPASI), Coonoor, for its high-quality tea produced at its Pachaimallai factory.
  • The Toopran Unit received the Excellence Award for Export Performance from the Federation of Commerce & Industry, Telangana.

2016-17

  • Tata Coffee was recognised as the ‘Most Ethical Company’ in Agriculture Sector in November, 2016 at a function held by World CSR Day in Taj Land’s End, Bandra, Mumbai
  • Theni plant was awarded ‘Silver’ status by SEEM National Energy Management awards
  • Tata Coffee Limited-Toopran unit was the winner of the 4-Star CII SR Excellence Award for continual development of Environment, Health and Safety practices.

2017-18

  • Tata Coffee adjudged 'Best Coffee Grower in India' at the Second Annual Ernesto Illy International Coffee Award
  • Received India’s Most Trusted Companies Awards 2017 on 24th September, 2017 3 in Mumbai, presented by IBC Infomedia
  • Instant Coffee Division (ICD) - Toopran unit was recognised and awarded with ‘Excellence in Industrial Productivity on FTAPCCI - 100 YEARS Shatak Shatak Pragathi Excellence’ at an award ceremony held on 25th June, 2017 at the Federation House, FTAPCCI, Hyderabad.

2018-19

  • The Company recognised by Economic Times Now and awarded the 'Best Green Business Award', acknowledging efforts across coffee, tea and pepper plantations; the best practices that they adopt for the judicious use of natural resources; and initiatives to conserve energy and stay carbon-negative.
  • The Company bagged the first prize for Excellence in Workplace Safety at the National Safety Practices Competition 2018, conducted by the CII.

2019-20

  • Tata Coffee was conferred with the Best Indian Coffee award at the 4th Ernesto Illy International Coffee for the season of 2018-19.
  • The company ranked among the Top 3 companies within the Tata group at the Tata Volunteering Week 11 (September 2019).

Milestones

  • 1922: Coorg Co. Ltd., London and Pollibetta Coffee Estates Co. Ltd., London - both managed by Matheson & Co., combined to form Consolidated Coffee Estates Ltd., Edinburgh.
  • 1943: Consolidated Coffee Estates Ltd., Edinburgh became a full-fledged Indian company headquartered in Pollibetta. In the same year, the shares in Consolidated Coffee Estates Limited (CCE) were offered to the public through a prospectus, with the parent, Edinburgh Company, being allotted a major share as a consideration for the transfer of its estates.
  • 1950-1960: Edinburgh Company sold all its shareholdings to the Indian public, relinquishing its controlling interest in CCE and becoming one of the first sterling plantation companies to become an Indian company.
  • 1966-67: Volkart properties in India, which included four estates, two curing works and an export division, merged with CCE, and the company was renamed as the erstwhile Consolidated Coffee Limited (CCL).
  • 1990-91: Tata Tea Limited, in a trend-setting and transparent open offer to the resident shareholders, acquired a controlling interest in CCL.
  • 1999: Asian Coffee Ltd., Veerarajendra Estates Ltd., and Charagni Ltd., merged with CCL, and became the single largest integrated plantation company in the world.
  • 1999: CCL became the single largest coffee plantation company in Asia with its estates located in Kodagu, Hassan and Chikmagalur districts of Karnataka.
  • 2000: the company was renamed as 'Tata Coffee Limited'.
  • 2005: Acquisition of 5 Tea estates and 1 Coffee estate located in Anamallais, Tamil Nadu from its parent company Tata Tea Limited.
  • 2005: Acquisition of the Theni Instant Coffee Unit located in Tamil Nadu from M/S High Hill Coffee Company.
  • 2006: Tata Coffee, along with Tata Global Beverages, acquired the Eight O’ Clock Coffee Company in Montvale, United States.
  • 2013: Inaugurated the exclusive roastery for Starbucks in Kushalnagar, Karnataka
  • 2017: the company became the first Indian Company to commence building a state-of-art eco-friendly design Instant Coffee plant in Vietnam. The plant is being setup at the Vietnam-Singapore Industrial Park in Southern Binh Duong province, Vietnam. This trailblazing move marks a very important phase in Tata Group's Instant Coffee Division. Tata Group also has presence in Vietnam's automobiles, steel, commerce and energy industries apart from the Instant Coffee plant, which will be operational starting 2019.
  • 2018: In partnership with Tata Global Beverages, the company launched Tata Coffee 1868 in November 2018 to commemorate the Tata group’s 150th-year celebrations.
  • 2019: Launched the state-of-art 5,000 MTPA FDC plant in Vietnam
  • 2019-20: the company launched e-commerce platform, The Sonnets - Voice of estates.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback