RATING

RECOMMENDATION

Sell

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

  • Dhelakat Tea Growth

Dhelakat Tea Revenue Growth

Growth in %

  • 11.32%

    1 Year

  • 10.50%

    3 Year

  • 4.31%

    5 Year

The total revenue of the company has increased 11% year over year (y-o-y) in FY22 over FY21. Within its 2 Estates, the Company cultivates and produces tea  The saleable crop was produced in FY22 in 9.52 lakh kg as opposed to FY21's 7.56 lakh kg, and out of that, 9.33 lakh kg were sold as opposed to 7.44 lakh Kg in FY21. This was mostly caused by favorable weather for manufacturing. Additionally, the price realization increased in every tea estate, which resulted in an increase in sales. The average price realization of the Company’s tea was Rs. 214.54 in FY22 as compared to Rs. 242.96 in FY21.

Dhelakat Tea Net Profit Growth(PAT)

Growth in %

  • -45.17%

    1 Year

  • NA

    3 Year

  • NA

    5 Year

In FY22, the company's net profit fell by 45% y-o-y. The major cause for the decline in profit is the increase in price realization of the Company's tea, which was Rs. 214.54 in FY22 as opposed to Rs. 242.96 in FY21. Additionally, the Company's depreciation expenditures increased 10% y-o-y in FY22. Since both the Estates are located in upper Assam they are on Gas supply by Assam Gas Company Limited (AGCL) for the firing of teas and due to steep hike in the gas prices their cost of production will also go up by at least Rs. 5 crs. 

Moreover, it is worth to note that Indian Oil Corporation Limited (IOCL) is further approaching the company to take over some more land for drilling for oil, which, if happens, the company might lose another 2 to 3 hectares of areas in addition to 10 hectares which has already been taken over by IOCL in the last 10 years.

Dhelakat Tea EPS Growth

Growth in %

  • -45.16%

    1 Year

  • NA

    3 Year

  • NA

    5 Year

Since the number of shares has not changed, the company's EPS has been modified by its net profit.

  • Dhelakat Tea Book Value Growth

Growth in %

  • 9.06%

    1 Year

  • 9.01%

    2 Year

  • -7.58%

    4 Year

Dhelakat Tea EBITDA Growth

Growth in %

  • -0.02%

    1 Year

  • NA

    3 Year

  • 16.17%

    5 Year

The company's EBITDA has fallen by 0.02% year over year. The main reason for the decline is the rise in employee benefit costs as a result of rising labor costs.

Dhelakat Tea Operating Profit Growth

Growth in %

  • -6.01%

    1 Year

  • NA

    3 Year

  • 56.47%

    5 Year

Dhelakat Tea Asset Growth

Growth in %

  • -0.76%

    1 Year

  • -0.40%

    3 Year

  • 2.67%

    5 Year

The total assets of the company have decreased by 0.76% y-o-y in FY22, because of the decrease in PPE of the company by around 3% y-o-y.

Dhelakat Tea Cash Flow from Operations

Growth in %

  • -36.05%

    1 Year

  • 34.26%

    3 Year

  • -16.38%

    5 Year

  • Dhelakat Tea Solvency Ratios

Dhelakat Tea D/E Ratio

The company's debt-to-equity ratio dropped 17% y-o-y in FY22. The company's equity multiplier declined by 10%, which clearly shows that it is not using outsourcing to gain financial leverage. Despite the company's total equity declining by 1% y-o-y. 

Dhelakat Tea Current Ratio

The company's current ratio plummeted by 13% y-o-y in FY22. One of the main causes was that the company's current assets declined at a faster pace than its current liabilities, such as inventories, which fell by 8% y-o-y in FY22, and receivables by 10% y-o-y.

Dhelakat Tea Quick Ratio

Dhelakat Tea Interest Coverage Ratio

  • Dhelakat Tea Operating Efficiency

In FY22, the company's total operational efficiency fell. Although the company's operating revenue has grown, its EBITDA and EBIT have fallen as a result of rising costs for labour, depreciation, and cost realization. FY23 has started on a bad note with floods hitting the Estates early in May, only. Excessive rainfall was recorded till the 15th of May, which will affect the quality of the teas. However, we might see some gains in the market due to the downfall of Sri Lankan Economy.

Exports of Orthodox tea have hiked up and there will be great demand. Unfortunately with the increase in the Cost of inputs, the marginal gain would get negated. All the above-listed factors have severely impacted the margins. 

Dhelakat Tea Operating Profit EBIT Margin(OPM)

Dhelakat Tea Profit Before Tax Margin (PBT Margin)

Dhelakat Tea Profit After Tax Margin (PAT Margin)

  • Dhelakat Tea Profitablity Ratio

Dhelakat Tea Return on Equity(RoE)

ROE of the company has decreased by 50% y-o-y in FY22, As per Du Pont Analysis, the decrease in Net Profit Margin is the main reason for the company which eventually happened because of the increase in expenses of the company.

Dhelakat Tea Return on Capital Employed(RoCE)

Dhelakat Tea Return to Assets (RoA)

ROA of the company has decreased by 44% y-o-y in FY22, and the total assets of the company decreased because of the decrease in receivables and current financial assets of the company.

  • Dhelakat Tea Valuation Ratios

Dhelakat Tea Earning Yield