Content

  1. 1Dhelakhat Tea Essentials
    1. 1.1 Dhelakhat Tea ISIN
    2. 1.2 Dhelakhat Tea Face Value
    3. 1.3 Dhelakhat Tea Total Share
    4. 1.4 Dhelakhat Tea Total Income
    5. 1.5 Dhelakhat Tea Profit After Tax
    6. 1.6 Dhelakhat Tea Promoter Holding
    7. 1.7 Dhelakhat Tea EPS
    8. 1.8 Dhelakhat Tea P/E
    9. 1.9 Dhelakhat Tea P/B
    10. 2.0 Dhelakhat Tea Market Capitalisation
    11. 2.1 Dhelakhat Tea Enterprise Value
    12. 2.2 Dhelakhat Tea Book Value
    13. 2.3 Dhelakhat Tea Intrinsic Value
    14. 2.4 Dhelakhat Tea Earnings Yield
    15. 2.5 Dhelakhat Tea Dividend Yield
    16. 2.6 Dhelakhat Tea Sector
    17. 2.7 Dhelakhat Tea Sub-sector
    18. 2.8 Dhelakhat Tea Category
    19. 2.9 Dhelakhat Tea Cashflow - Operations
    20. 3.0 Dhelakhat Tea Cashflow - Financing
  2. 2Dhelakhat Tea Growth
    1. 2.1 Dhelakhat Tea Compounded Sales Growth
    2. 2.2 Dhelakhat Tea Compounded Profit Growth
    3. 2.3 Dhelakhat Tea Return On Equity
  3. 3 About Dhelakhat Tea
  4. 4 Dhelakhat Tea IPO Details
  5. 5 Dhelakhat Tea Funding
  6. 6 Dhelakhat Tea Merger & Acquisition
    1. 6.1 Dhelakhat Tea Merger
    2. 6.2 Dhelakhat Tea Acquisition
    3. 6.3 Dhelakhat Tea Investments
  7. 7 Dhelakhat Tea Subsidiaries
  8. 8 Dhelakhat Tea Business Model
  9. 9 Dhelakhat Tea Revenue Segmentation
  10. 10 Dhelakhat Tea Product & Services
  11. 11 Dhelakhat Tea Assets
  12. 12 Dhelakhat Tea Industry Overview
    1. 12.1 Dhelakhat Tea Industry Statistics
    2. 12.2 Dhelakhat Tea Future Prospects
    3. 12.3 Dhelakhat Tea Government Initiatives
  13. 13 Dhelakhat Tea Awards & Achievements
  14. 14 Dhelakhat Tea SWOT
    1. 14.1 Dhelakhat Tea Strengths
    2. 14.2 Dhelakhat Tea Shortcomings
    3. 14.3 Dhelakhat Tea Opportunities
    4. 14.4 Dhelakhat Tea Government Threats
  15. 15 Dhelakhat Tea Rating
  16. 16 Dhelakhat Tea Detail Info

Dhelakhat Tea Essentials

Face Value

₹10.00

Total Share

3,92,770

Total Income

₹20.78

Profit After Tax

₹0.20

EPS

₹5.04

P/E

16.67

P/B

0.97

Market Capitalisation

₹3.30 Cr

Enterprise Value

₹7.00 Cr

Book Value

₹86.65

Intrinsic Value

₹102.00

Earnings Yield

6.00 %

Sector

Consumer Staples

Sub-sector

Tea/ Coffee

Category

Micro Cap

Cashflow - Operations

₹0.87

Cashflow - Financing

-₹0.03

Dhelakhat Tea Growth

Compounded Sales Growth

  • 12.20%

    1 Year

  • 11.05%

    3 Year

  • 4.46%

    5 Year

Pro Only

Compounded Profit Growth

  • -45.17%

    1 Year

  • -42.32%

    3 Year

  • -15.12%

    5 Year

Pro Only

Return On Equity

  • 5.81%

    2022

  • -0.15%

    2020

  • -45.41%

    2018

Pro Only

About Dhelakhat Tea

  • Dhelakhat Tea Company Limited is primarily engaged in harvesting, manufacturing, and selling of black tea. The company is having two estates namely, Dhelakhat and Mohunbaree which sold 9.33 lakh kgs of tea in 2021-22
  • The company, which partners with Rydak Syndicate Ltd., is an Orthodox Tea Manufacturing Concern. It was established in the early 1900s under British Control and now owns two tea plantations in Upper Assam. The Jardine Henderson Group of businesses took control of it in the 1960s.
  • The company was established in 1917, and Kolkata, India, operates as its corporate headquarters.
  • Indian Oil Corporation Limited (IOCL) is further approaching the company to takeover 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.

  • Dhelakhat Tea IPO Details

The company doesn't have any plan to go public as of know. 

  • Dhelakhat Tea Revenue Segmentation

  • Revenue generated from Manufacturing of tea
  • Other Income
  • Dhelakhat Tea Product & Services

Products:

  • Tea Estates - The portfolio includes tea estates and engages in the manufacturing of tea leaves.
  • Dhelakhat Tea Assets

Assets as on 31st March 2022:

AssetsAmount in Cr.
Bearer PlantsRs.12.2
Plant and MachineryRs.1.1
VehiclesRs.0.16
BuildingsRs.0.46
  • Dhelakhat Tea Industry Overview

Industry Statistics

Tea Industry:
  • Tea consumption in India has remained stable, with tea being drunk as a vital component of the daily routine in over 90% of households. Coffee, on the other hand, has gained appeal among India's youth population as a result of the proliferation of coffee bars and structured cafe shops, as well as the country's broader spread of cafe culture.
  • The Northeast (including Assam) and north Bengal are the main tea-growing regions (Darjeeling district and the Dooars region). Tea is also produced extensively in the Nilgiris region of south India. India is one of the world's top tea consumers, using around three-quarters of the country's total output.
  • Between FY16 and FY20, the Indian tea market had total revenues of $7,656.8Mn, representing a CAGR of 12%. In comparison, over the same period, the South Korean and Chinese markets grew at CAGRs of 7% and 11%, respectively, to reach respective values of $2,195.0Mn. and $26.4Bn. in FY20.
  • The growth of the tea industry is directly attributed to a decrease in the cost of raw materials, favorable market conditions, and the increase in the availability of labor for plantation activity.

Impact of Covid- 19:

  • The bulk of India's tea growers had output decreases as a result of the COVID-19 lockout at the end of March FY20, which disrupted the supply chain. The continual precipitation makes things much more difficult. In FY21, the weather again had an impact on productivity, but this time there was a drought. Due to the decrease in availability, prices went substantially, forcing enterprises to contend with previously unheard-of tea inflation. Hindustan Unilever, one of the larger market players, held their product pricing unchanged in FY20, taking the rise into account.
Exports:
  • After Kenya (including neighboring African nations), China, and Sri Lanka, India ranks fourth in terms of tea exports. India is Asia's third-largest producer and exporter of coffee, as well as the world's sixth-largest producer and fifth-largest exporter.
  • According to the Indian Brand Equity Foundation (IBEF), total tea exports were US$ 825Mn in FY20 and US$ 756Mn in FY21. Total coffee exports were US$ 720 Mn in FY21.
Market Trends:
  • Capitalization of Tea's Therapeutic and Medical Qualities: A variety of teas have therapeutic and restorative effects that soothe the body and mind. In the modern day, where many individuals, particularly young people, suffer from chronic illnesses of the body and mind, these are rapidly gaining favor. Shortly, it's anticipated that young people will become even more interested in Ayurvedic spices like Cordyceps and other functional teas like immune boosters, stress relievers, and teas for sleeplessness, inflammation that contains adaptogens, and teas for inflammation.
  • Gourmet teas & teas for gifts - The market for gifts has recently seen a rise in the popularity of teas. Brands are also offering attractive gift packs of top strains. Teas with luxury and practical packaging, such as pyramid teabags, are chosen for giving and are thus anticipated to be in higher demand. More and more customers are choosing to present teas that have been produced in a very sophisticated way or new and contemporary tea varieties with infusions. Since tea is so widely consumed in India, it is anticipated that this trend will continue to grow.
  • Tea shops and cafes are sprouting up: India is home to many tea booths, most of which are dispersed and disorganized. India is seeing the emergence of tea café chains that provide customers a choice between at-home consumption and the lowly roadside shop. Many businesses have popped up with tea shops resembling contemporary coffee chains, and they are gradually disrupting the Indian tea market. These businesses aim to attract young Indians by providing an improved version of the tea found in "Dhabas," and their efforts are bearing fruit. Some of these startups have grown into large, nationwide enterprises.
  • Innovation in flavors of Tea: Teas are no exception, with today's tea industry demand focusing on exotic and mixed flavors of teas that are both novel and pleasant. As customer demands for innovation grow, RTD, sparkling teas, and flavored tea consumption habits are on the rise.
  • Increase in auction price of Tea: An review of the most recent data available with the Tea Board shows that the prices of tea in the Indian auctions increased to 42.38% in FY20 over FY19.
Peers:
  • Peers of the company include Tata Coffee Ltd, Rossell India Ltd, Dhunseri Tea & Industries Ltd, and others.

Future Prospects

Outlook:

  • According to MarketLine industry profiles in FY20, the Indian tea and coffee market had the largest value, with total sales of $5,628.5Mn., accounting for 74% of the total market value. In FY20, sales of hot coffee had a value of $1,267.3Mn., accounting for 17% of the overall market. The market's growth is likely to slow, with a five-year CAGR of 8% estimated to push the market to a value of $11,363.4Mn.by the end of FY25,an increase in 48% since FY20. In comparison, the South Korean and Chinese markets will increase at CAGRs of 5% and 9% over the same time period, respectively, to reach $2,752.0Mn. and $39.9Bn in FY25.

Government Initiatives

Government Regulatory Body:

  • The Tea Board of India was established under the Tea Act of 1953 and began operations in April 1954. It has 17 offices around India and is headquartered in Kolkata. The Tea Board of India also engages in direct promotional operations, such as organizing cooperative participation in international fairs and exhibitions, arranging buyer-seller meetings, and sending and hosting trade delegations, in addition to developmental and regulatory tasks. It also conducts market research, market analysis, consumer behavior tracking, and dissemination of pertinent information to exporters and importers, among other things.

  • The tea board, which is under the Ministry of Commerce and Industry, proposed the concept of a "Tea Boutique" in order to showcase Tea's wide varieties in one place and excite customers, particularly youth, about the qualitative nuances and proper brewing method in a magnificent and aesthetic atmosphere. The Tea Board will provide financial assistance to a potential entrepreneur for three (3) years in order to help them open a Tea Boutique.

Dhelakhat Tea Strengths

  • R&D division of the company, is constantly working to launch more products. 

Dhelakhat Tea Shortcomings

  • Despite being in business for more than 100 years, the corporation was not able to achieve a substantial market share
  • Tea prices are connected to auction prices, which are again connected to global prices which signal towards substantial price fluctuation 

Dhelakhat Tea Opportunities

  • The tea sector in India is benefiting from increased demand for packaged varieties of beverages in both urban and rural areas due to lower risks of adulteration, easier storage, and improved quality. Demand for packaged variants containing natural components is also increasing. The company should take significant steps in order to increase its goodwill.
  • Green tea consumption is projected to expand in the future years as people become more aware of its health advantages. The corporation should make significant efforts to expand its green tea market, which has the potential to generate significant profits.
  • Teas are no exception, with today's tea demand focusing on unique and mixed flavors of teas that are both novel and enjoyable. RTD, sparkling teas, and flavored tea drinking habits are on the rise as customer demands for innovation expand. On the other hand, demand for Filtered coffee, Roaster coffee, and even Organic coffee is expanding in the coffee category. The company should expand its product line to meet consumer demand.

Dhelakhat Tea Threats

  • The tea and coffee market is extremely competitive. Some of the big firms in South India, such as Tata Coffee Ltd., Harrisons Malayalam, and Kerala Tea Company Ltd., could pose a serious threat.
  • Meeting growing global demand in the future decades is likely to be one of the company's toughest problems. This worry also raises issues of fairness in agricultural production. During the next decade, Asia's demand for these beverages (particularly tea) will skyrocket. With the rise of rich middle-class consumers, demographic estimates in India, in particular, show a big developing potential market. Agricultural production issues related to unfair and illegal labor practices, on the other hand, continue to be a problem in many regions.
  • The sector is more susceptible because of its high reliance on the climate. Climate changes also cause pests and diseases in plants, which have an influence on yield.
Dhelakhat Tea Rating

  • RECOMMENDATION

    Neutral

  • Dhelakhat Tea Detail Info

Industry Statistics

PRIVATE LIMITED

Registered In

India

last Updated

05/09/2022

Registered Date

18/11/1917

Planify Ticker

DTCL

Reg Office: 4, Dr. Rajendra Prasad Sarani Kolkata – 700 001

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