The Grob Tea Co’s five-year sales growth rate stands at -0.44%, indicating a slight contraction in revenue over the period. More notably, the company’s EBIT growth over five years shows a significant negative figure of -172.95%, signalling challenges in operational profitability expansion. The average EBIT to interest coverage ratio is 2.75, suggesting the company generates sufficient earnings to cover interest expenses, albeit with limited cushion.
Debt metrics reveal a conservative capital structure, with an average debt to EBITDA ratio of 0.15 and net debt to equity ratio of 0.07. These figures indicate relatively low leverage, which may provide financial flexibility but also reflect limited utilisation of debt for growth. The sales to capital employed ratio averages 1.12, pointing to moderate efficiency in using capital to generate sales.
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The Grob Tea Co’s average ROCE is recorded at 6.13%, while the average ROE is 7.04%. These returns suggest moderate capital efficiency and shareholder profitability relative to industry benchmarks. The tax ratio is reported at 100%, which may reflect accounting or operational factors impacting tax expenses. The dividend payout ratio is notably negative at -3184.38%, indicating irregular dividend distributions or adjustments in payout policy.
From a shareholder perspective, pledged shares stand at 0.00%, and institutional holding is minimal at 0.06%, highlighting limited institutional investor participation. The stock’s recent market performance shows a day change of -0.41%, with the current price at ₹1,067.20, slightly below the previous close of ₹1,071.60. The 52-week price range spans from ₹747.00 to ₹1,359.90, reflecting considerable volatility over the year.
When compared to the Sensex, The Grob Tea Co’s returns over various periods present a mixed picture. The stock’s one-week return is -0.08% against the Sensex’s 0.84%. Over one month, the stock shows a 5% return, outperforming the Sensex’s 0.78%. However, year-to-date returns are -17.78%, contrasting with the Sensex’s positive 9.58%. Over one year, the stock’s return is -3.97%, while the Sensex gained 10.47%. Longer-term returns over three and five years stand at 17.24% and 67.67%, respectively, trailing the Sensex’s 41.53% and 100.26%. Ten-year data for the stock is not available, whereas the Sensex recorded a 235.11% return.
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Within the FMCG sector, The Grob Tea Co’s quality evaluation adjustment places it among peers with below average assessments, including companies such as Mcleod Russel, Goodricke Group, and Harri. Malayalam. This positioning reflects the company’s current financial profile characterised by subdued growth metrics, moderate returns, and conservative leverage. Investors analysing The Grob Tea Co should consider these fundamentals in the context of sector dynamics and broader market conditions.
In summary, the revision in The Grob Tea Co’s quality parameter evaluation highlights shifts in key financial indicators. The company’s operational growth and profitability metrics over the past five years show contraction, while capital efficiency and shareholder returns remain moderate. Debt levels are low, suggesting a cautious approach to leverage. Market performance relative to the Sensex indicates periods of underperformance, particularly in the medium term. These factors collectively inform the adjustment in the company’s quality score and provide a nuanced view of its business fundamentals.
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