What is CAGR? What does CAGR table indicate for Tata Coffee Ltd.?

Compounded average growth rate (CAGR) measures the average annual growth rate compounded year-on-year over a period of time.

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...

10 Year X-Ray

Standalone basis Standalone basis P Consolidated basis P

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

What is a Financial Track Record? How to read this chart in order to understand the data present here?

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'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'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	NA	NA	NA	NA	NA	NA	NA	NA	NA	NA

Growth Parameters	Growth Parameters Colour Code Guide

Net Sales (Rs. Cr.)	401	508	598	651	685	708	779	705	703	719
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.)	2.9	4.11	5.47	6.02	5.2	3.35	7.07	2.91	2.98	3.34
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.)	21.58	24.48	28.08	32.33	36.32	41.72	48.04	49.27	51.97	53.57
Adjusted Net Profit	54.1	76.7	102	112	97.1	62.6	132	54.3	55.7	62.4
Net Op. Cash Flow (Rs. Cr.)	23.3	91	91.3	40.4	35.7	78.4	92.3	13.3	41.6	47.5
Debt to Cash Flow from Ops	5.1	0.79	1.2	2.69	3.15	1.41	0.83	7.23	2.11	1.5

Difference between Standalone Basis and Consolidated basis? Which method is preferred for Tata Coffee Ltd. ?

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	10.6	8.1	3.7	3.1
Share Price	3.1%	3%	-13.3%	24%

Key Financial Parameter	Performance Ratio Colour Code Guide

	Mar'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Return on Equity (%)	14.18	17.83	20.82	19.94	15.14	8.59	15.76	5.97	5.89	6.33
Operating Profit Margin (%)	15.87	22.94	23.48	22.58	18.44	13.36	18.74	7.71	9.33	7.82
Net Profit Margin (%)	13.51	15.09	17.09	17.28	14.17	8.85	16.96	7.7	7.92	8.67
Debt to Equity	0.29	0.16	0.21	0.18	0.17	0.14	0.09	0.1	0.09	0.07
Working Capital Days	221	181	182	204	211	278	275	256	248	227
Cash Conversion Cycle	126	109	99	110	130	140	131	154	157	159

Management X-Ray

Shareholding Pattern

Entity	Percentage Holding
Promoters	57.48%
Institutions	5.60%
Non-Institutions	36.92%

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

FAQs

1. Is Tata Coffee Ltd. a good quality company?

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.

2. Is current market price of Tata Coffee Ltd. a good price to buy it?

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.

3. What is Tata Coffee Ltd. share price return in the past 10 years ?

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.

About Company

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

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

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.

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