A textile stock involved in tea cultivation and LED lights manufacturing hit a 5 percent upper circuit at Rs.1,058.40 per share, following a remarkable 360 percent quarterly increase in net profits and substantial revenue growth.
Price Movement
The Grob Tea Company Ltd’s share price surged to a 5 percent upper circuit at Rs.1,058.40 per share during Thursday’s trading, up from its previous close of Rs.1,008.00. The stock has delivered returns exceeding 250 percent over five years.
Financial Performance
The surge in The Grob Tea Company Ltd’s stock price can be attributed to its strong financial performance, marked by significant gains in both net profits and operational revenue.
For the quarter ending September 2024, the company posted consolidated revenue of Rs.51.49 crores, reflecting a 74 percent increase compared to Rs.29.56 crores in Q2 FY24. On a quarter-over-quarter basis, revenue surged by 114 percent from Rs.23.96 crores in Q1 FY25.
The company’s Profit After Tax (PAT) grew by an impressive 149 percent YoY, reaching Rs.23.43 crores in Q2 FY25, compared to Rs.9.41 crores in Q2 FY24. PAT also rose by 360 percent from Rs.5.12 crores in Q1 FY25.
In addition, The Grob Tea Co Ltd’s financial metrics highlight its robust performance, with a Price-to-Earnings (P/E) ratio of 7.20, well below the industry average of 12.5.
Business Segments
The Grob Tea Company Ltd operates in two main segments: tea production and LED light trading. In its tea segment, the company cultivates, processes, and sells CTC black tea from six tea estates in Assam. Additionally, it trades LED lights and related products, diversifying its sources of revenue.
Revenue Segments
Grob Tea Co. Ltd’s tea segment contributes 100 percent of the revenue, with Rs. 5,149.83 crore, while the LED light segment has 0 percent revenue. In terms of assets, the tea segment accounts for 92.1 percent, with Rs. 7,735.73 crore, and the LED light segment holds 7.9 percent, with Rs. 665.06 crore.
Manufacturing Facility
The company operates five tea estates: Doyang, Dessoie, Kanu, Teen Ali, all situated in Assam’s tea-producing belt, and Pathemara Tea Estate located in the Happy Valley circle of Cachar District. These estates cover a total area of 4,236.07 hectares, with 2,332.71 hectares dedicated to lush tea plantations, capable of producing 40 lakh kilograms of premium Assam tea.
Company Profile
The Grob Tea Company Limited is an Indian company primarily involved in the cultivation, production, and sale of tea, along with trading LED streetlights. The company focuses on both the tea industry and the LED lighting business.
Written by – Siddesh S Raskar
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