X

Bengal Tea & Fabrics Ltd. Stock Analysis

Small Cap
Evaluated by 87 users | BSE: 532230 | NSE: |
Textile - Spinning
Bengal Tea & Fabrics, belonging to the B D Kanoria Group was incorporated in the year 1983. The company took over the Bengal Tea & Industries, earlier known as Bengal Tea Company, in the year 1985.Bengal Tea Company was incorporated in the year 1950 by the Kanorias and took...

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 7.9%-5.67%11.59%11.61%3.42%2.96%-1.46%-2.82%0.5%0.04%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 177182220253223223214145111110
Y-o-Y Gr. Rt.-2.6%21%15%-11.7%0.1%-4.1%-32.2%-23.8%-0.2%
Adjusted EPS (Rs.) 7.73-15.7210.2813.481.031.33-6.88-7.39-1.31-1.81
Y-o-Y Gr. Rt.--303.4%NA31.1%-92.4%29.1%-617.3%NANANA
Book Value per Share (Rs.) 59.6846.1657.7169.370.3771.85112.6107.49106.4104.33
Adjusted Net Profit 7-14.29.312.10.91.2-6.2-6.7-1.2-1.6
Net Op. Cash Flow (Rs. Cr.) 529.910.628.135.218.818.693.34.5
Debt to Cash Flow from Ops 18.792.618.863.091.912.942.82.887.084.66
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.
Bengal Tea & Fabrics Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -5.1%-13.1%-19.8%-0.2%
Adjusted EPS -185.1%-211.9%NANA
Book Value per Share 6.48.2-2.5-2
Share Price 5.8% -8.4% -17.2% 30%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.62-27.1318.1119.760.890.96-5.91-6.71-1.23-1.71
Operating Profit Margin (%) 13.15-0.6312.1414.057.188.344.050.63.423.26
Net Profit Margin (%) 3.93-7.84.224.810.420.54-2.89-4.58-1.07-1.47
Debt to Equity 1.731.881.81.391.060.850.510.270.240.22
Working Capital Days 1391288897122124120145171177
Cash Conversion Cycle 8372495868626087111107
Entity Percentage Holding
Promoters 73.38%
Institutions 0.57%
Non-Institutions 26.05%
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 Bengal Tea & Fabrics Ltd.'s performance infers:

Bengal Tea & Fabrics Ltd. earnings have declined by -211.9%, whereas share price has depreciated -8.4% 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 Bengal Tea & Fabrics Ltd. share prices over the last 10 years. Here is what we found out:

Bengal Tea & Fabrics Ltd. share price has depreciated -4.3% annually over the past ten years.

Bengal Tea & Fabrics, belonging to the B D Kanoria Group was incorporated in the year 1983. The company took over the Bengal Tea & Industries, earlier known as Bengal Tea Company, in the year 1985.

Bengal Tea Company was incorporated in the year 1950 by the Kanorias and took over the undertakings of The Ananda Assam Tea Company and Asarwa Mills in the year 1970 and 1976, respectively.

Currently the company has interest in the business of Tea and Textiles, with a

Bengal Tea & Fabrics, belonging to the B D Kanoria Group was incorporated in the year 1983. The company took over the Bengal Tea & Industries, earlier known as Bengal Tea Company, in the year 1985.

Bengal Tea Company was incorporated in the year 1950 by the Kanorias and took over the undertakings of The Ananda Assam Tea Company and Asarwa Mills in the year 1970 and 1976, respectively.

Currently the company has interest in the business of Tea and Textiles, with a turnover of about Rs 126.8 crore.

The tea estates of the company are situated in Upper Assam and produces about1.7 million kilograms of quality black tea.

Asarwa Mills, a composite textile mill, is situated in the heart of Ahmedabad in the state of Gujarat and has an installed capacity of 47,616 spindles and 72 looms. It was set-up in the year 1900 and is one of the oldest mills in India. The present management has modernized the mill in a phased manner to transform the same in a state-of-art, tech-savvy mill. The revenue from export of yarn is about Rs 0.372 crore.

Product Variety:

The Company has interest in the business of tea and textiles.

Tea -

Bengal Tea owns following three tea estates with an annual production of about 1.7 million kilo grams of tea, having a planted area of 623 hectares, situated in North Lakhimpur in Upper Assam.

  • Ananda Tea Estate
  • Pathalipam Tea Estate
  • Bordeobam Tea Estate

The Company processes the green tea leaves at its own factory situated at Ananda Tea Estate. It also processes green tea leaves purchased from small growers.

Products:

Black Tea - CTC - Leaf and Dust and tea seed.

Textile -

The company owns a composite textile mill, namely Asarwa Mills, with an installed capacity of 47,616 spindles and 94 looms, situated in Ahmedabad in the state of Gujarat.

Products:

  • Cotton Yarn
  • Manmade Fiber Yarn
  • Blended Yarn
  • Fabrics - Cloth

Latest Development:

The board of directors of Bengal Tea & Fabrics has recommended a dividend of 5%, at Re 0.50 per equity share of Rs 10 each, subject to shareholders approval.

Outlook:

Due to improvement of demand of quality and the company’s thrust on producing the same, the tea division is expected to maintain profitability.

The outlook of the textile industry appears to be brighter as the farmers continue to cover more area for sowing of BT cottonseeds resulting in higher yields. The company has undertaken the second phase of modernization cum expansion plan and is visualizing a big opportunity in the country having a population of over 1.1 billion with the improving standard of living and changing lifestyle.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback