Rydak Syndicate Limited Unlisted Shares | Share Price

Rydak Syndicate Unlisted Shares

Content

Rydak Syndicate Essentials

ISIN

INE826F01019

Face Value

₹10.00

Total Share

9,73,128

Total Income

₹147.83 Cr

Profit After Tax

₹22.99 Cr

EPS

₹236.26

P/E

2.29

P/B

1.17

Market Capitalisation

₹52.55 Cr

Enterprise Value

₹54.15 Cr

Book Value

₹461.94

Intrinsic Value

₹7,145.00

Dividend Yield

0.28 %

Earnings Yield

43.75 %

Sector

Consumer Staples

Sub-sector

Tea/ Coffee

Rydak Syndicate Growth

Compounded Sales Growth

11.81%

1 Year
16.79%

3 Year
8.82%

5 Year

Pro Only

Compounded Profit Growth

57.40%

1 Year
234.81%

3 Year
86.87%

5 Year

Pro Only

Return On Equity

51.15%

2022
5.62%

2020
6.58%

2018

Pro Only

About Rydak Syndicate

Rydak Syndicate Limited is primarily engaged in harvesting, manufacturing, and selling of tea. By transforming one of its historic bungalows into a commercial property, the firm has also started operating commercially as a Tea Tourism enterprise in the Dooars Region under the name of Baradighi - The Bungalow.
The company's largest stakeholder and primary provider of the majority of its goods and services is Jardine Henderson Limited.
The company has 6 tea estates which are located in Assam and Door's region of West Benga and have total land of 3500 hectares for the cultivation and manufacturing of tea.
After the merger of many tea enterprises, including Rydak, Central Cachar, Baradighi, and Mangaldai, the corporation was founded in 1900, and headquartered at Kolkata.

Rydak Syndicate IPO Details

The company is already listed on the Calcutta Stock Exchange and has no plans to go for IPO.

Rydak Syndicate Subsidiaries

Associate Company:

Sangam Investments Limited: Sangam Investment is an investment distribution company with a strong reputation for both outstanding performance and excellent customer service.

Rydak Syndicate Business Model

The company is engaged in harvesting, manufacturing, and selling tea. The company has also commenced operations commercially as a Tea Tourism operation in Dooars Region in the name of Baradighi – The Bungalow by converting one of its heritage bungalow into a commercial property

Rydak Syndicate Revenue Segmentation

Revenue generated from sales of tea
Other Revenue

Rydak Syndicate Product & Services

Products:

Kopati Tea
Rydak Premium Tea
Sersipore Tea

Rydak Syndicate Assets

Assets as on 31 March 2022:

Assets	Amount in Cr.
Leasehold Land	Rs.2
Bearer Plant	Rs.46
Buildings	Rs.6
Plant	Rs.5
Furniture	Rs.0.2
Vehicles	Rs.0.8
Machinery	Rs.0.34

Rydak Syndicate 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. A number of 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 "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.

Rydak Syndicate Strengths

In addition to giving the company's bank facilities its 'CRISIL BBB-/Stable rating,' CRISIL Ratings has also lifted the suspension of the company's rating on those facilities. The ranking indicates the firms' well-established market positions, which are supported by their substantial market share, solid operational efficiency, modest working capital cycle, and sound financial situation.
When compared to its competitors, the company's net profit margin is higher.
In comparison to its competitors, the firm has consistently increased its revenue from FY18 to FY22, even throughout Covid-19 and the nationwide shutdown.
The company capital structure has been at a healthy level due to lower reliance on external funds.

Rydak Syndicate Shortcomings

Despite being in business for more than 100 years, the corporation hasn't yet penetrated the whole Indian market.
Tea prices are connected to auction prices, which are again connected to global prices which signals towards substantial price fluctuation

Rydak Syndicate 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.

Rydak Syndicate 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.