X

Warren Tea Ltd. Stock Analysis

Small Cap
Evaluated by 153 users | BSE: 508494 | NSE: WARRENTEA |
Tea/Coffee
Warren Tea Limited was incorporated on May 31, 1977 in the state of Assam. The company obtained the certificate for commencement of Business on June 30,1977. Warren Tea Limited is the flagship of the Warrens group. Being one of the largest bulk tea producers in India and in the world, Warren...

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 13.56%3.67%10.71%20.14%11.08%2.54%-11.72%-4.33%-10.42%-17.39%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 212213119140130138110119119123
Y-o-Y Gr. Rt.-0.6%-44%17.7%-7%6.2%-20.7%8.5%-0.4%3.7%
Adjusted EPS (Rs.) 11.583.0511.3216.4410.382.21-13.95-6.81-13.35-20.39
Y-o-Y Gr. Rt.--73.7%271.2%45.2%-36.9%-78.7%-731.2%NANANA
Book Value per Share (Rs.) 67.6870.9558.4275.3681.6485.4783.5580.0869.8952.94
Adjusted Net Profit 21.15.613.519.612.42.6-16.7-8.1-16-24.4
Net Op. Cash Flow (Rs. Cr.) 29-1.6-816.517.62.6-17.52.76.9-0.6
Debt to Cash Flow from Ops 0.42-0.09000.153.91-1.4712.365.75-87.05
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.
Warren Tea Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -5.9%-1.2%3.9%3.7%
Adjusted EPS -206.5%-214.5%NANA
Book Value per Share -2.7-8.3-14.1-24.3
Share Price -17.4% -18.2% -23.5% -0.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 14.133.4210.6419.8911.012.22-15.1-8.32-17.81-33.21
Operating Profit Margin (%) 19.397.8617.7521.8311.944.03-17.87-4.01-14.58-20.63
Net Profit Margin (%) 9.972.6111.3614.029.521.91-15.19-6.83-13.46-19.83
Debt to Equity 0.10000.030.10.260.350.470.81
Working Capital Days 7187161139171172226197188164
Cash Conversion Cycle -732657083871391199039
Entity Percentage Holding
Promoters 73.72%
Non-Institutions 26.28%
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 Warren Tea's performance infers:

Warren Tea earnings have declined by -214.5%, whereas share price has depreciated -18.2% 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 Warren Tea share prices over the last 10 years. Here is what we found out:

Warren Tea share price has depreciated -6.7% annually over the past ten years.

Warren Tea Limited was incorporated on May 31, 1977 in the state of Assam. The company obtained the certificate for commencement of Business on June 30,1977. Warren Tea Limited is the flagship of the Warrens group. Being one of the largest bulk tea producers in India and in the world, Warren Tea Limited produces 16 million kgs. of tea annually. With its renowned 14 Tea Estates in Upper Assam spread over Moran, Doom Dooma, Panitola and Tingri Districts, the produce of the Company is savoured

Warren Tea Limited was incorporated on May 31, 1977 in the state of Assam. The company obtained the certificate for commencement of Business on June 30,1977. Warren Tea Limited is the flagship of the Warrens group. Being one of the largest bulk tea producers in India and in the world, Warren Tea Limited produces 16 million kgs. of tea annually. With its renowned 14 Tea Estates in Upper Assam spread over Moran, Doom Dooma, Panitola and Tingri Districts, the produce of the Company is savoured across 50 countries around the world.

When James Warren decided to create a new Tea Estate in 1850, inspiration set its own timetable. Warren, and thereafter his family, wanted teas that evoked beautiful emotions in people all over the world. Today the Warren legacy presents a history so rich in experience and achievement that it has changed the very course of the Indian tea producers’ art. Generations of dedicated and gifted tea people, working with the most popular of nature’s herbs, have transformed Warren from a mere tea company to a House of rare Quality, so very satisfying to the consumers of its produce.

The regular export markets include quality tea drinking nations like UK, Ireland, Germany, the UAE, USA, Iran and Pakistan. The quality produced at Warrens has not only stood the test of time and palate, but matured and improved with its passage of time. In the great tradition of its founders, the Company believes that the world is its “cuppa” and tries its best to see that the cup “brimmeth over with joy and good cheer and satisfaction”.

The Warrens group has been involved in tea production for over a century and now is actively looking towards expansion in other industries. “Warren Steels (P) Limited” is one such diversification where the Company has put up an Investment Casting unit at Sotanala, Behror (Rajasthan). The land for this project was procured from Rajasthan State Industrial Development & Investment Corporation Ltd. (RIICO) in the year 2005 and started  production within a record time span of  9 months,  in July, 2006.

Warrens, cherish the fact that not only is we the biggest quality tea producers that we set the standards for the entire industry. This unit is the first step to a long journey ahead. We plan to flourish and continue to set higher standards for our competitors and more importantly for itself.

The company exports its products to the United Kingdom, Germany, Ireland, North America, Pakistan, Iran, and the Middle East.

Business area of the company:

The Company's principal activities are plantation, manufacture and sale of Black tea and provide travel related activities. It is engaged in the integrated process of growing, harvesting, manufacturing and sale of black tea and travel related activities.

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

Callback