Norben Tea & Exports Reports Strong Half-Year Growth Amid Long-Term Challenges

Norben Tea & Exports, a microcap player in the tea and coffee industry, has recently undergone an adjustment in evaluation. The company reported positive financial performance for the third quarter of FY24-25, with net sales for the half-year reaching Rs 5.29 crore, reflecting a growth rate of 45.33%. Additionally, the profit after tax for the same period was recorded at Rs 0.82 crore.
Despite these positive indicators, the company faces challenges in its long-term fundamentals. The average Return on Capital Employed (ROCE) stands at 2.92%, and the annual growth rates for net sales and operating profit over the past five years have been relatively modest at 7.17% and 6.03%, respectively. Furthermore, the company's high Debt to EBITDA ratio of 6.62 times raises concerns about its ability to service debt.

In terms of market performance, Norben Tea & Exports has outperformed the broader market, generating a return of 211.56% over the past year, significantly higher than the BSE 500's return of 3.09%. However, it is important to note that the company's profits have experienced a decline of 161% during the same period.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.