Grob Tea Co. Ltd. (GROBTEA) AI Stock Analysis

• Market Cap: ₹1.05B
• Dividend Yield: 0.3%
• Average Volume (3M): 678.00
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: -20.04%
• EPS Growth: -104.83%
• Country: IN
• Employees: 3,790
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 140.38
• Shares Outstanding: 1,162,330
• 10 Day Avg. Volume: 293
• 30 Day Avg. Volume: 678
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 8.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹992.00 ▲(0.73% Upside)

Grob Tea Co. Ltd. shows a strong financial recovery with improved revenue and profit margins, contributing significantly to the overall score. Technical analysis supports a positive outlook with bullish momentum. However, the valuation is moderate, with a fair P/E ratio and low dividend yield, slightly tempering the overall score.

Positive Factors

Revenue & Profit Recovery

A material revenue increase and return to profitability indicate sustained demand recovery and improved cost control. Over 2-6 months this supports reinvestment in operations, strengthens internal funding for growth initiatives, and reduces reliance on external financing.

Cash Generation & Free Cash Flow

Robust operating cash flow and positive free cash flow reflect efficient conversion of earnings into liquidity. This durable cash generation enables capex discipline, working capital funding, and leaves room for strategic investments or debt reduction without compromising operations.

Low Leverage and Improving ROE

Low leverage and rising ROE signal a stable capital structure and improved capital efficiency. Over the medium term this provides financial flexibility to withstand commodity cycles, pursue selective growth, or return capital while keeping default and refinancing risk low.

Negative Factors

Declining Gross Margin

A falling gross margin, even from a healthy level, suggests structural cost pressures or weakening pricing power. If persistent, margin erosion can reduce sustainable operating profit, constrain reinvestment, and heighten sensitivity to input-cost shocks over the medium term.

Historical Revenue and EPS Volatility

Large negative annual growth metrics point to pronounced volatility in sales and earnings. Such swings increase forecasting uncertainty, can strain stakeholder confidence, and make multi‑period planning and capital allocation more difficult despite the recent recovery.

Cash Flow Variability

Historical fluctuations in operating cash flows indicate potential instability in cash generation. This variability can force higher liquidity buffers, limit consistent capex or dividend policies, and increase reliance on external funding during weaker cycles.

Grob Tea Co. Ltd. Business Overview & Revenue Model

Company Description

The Grob Tea Company Limited cultivates, manufactures, and sells tea in India. It owns tea gardens under the names of Doyang, Dessoie, Kanu, Martycherra, Pathemara, and Teen Ali tea estates located in Assam. The company's gardens comprise an area of 4236.07 hectares and 2332.71 hectares of tea plantations. The Grob Tea Company Limited was incorporated in 1895 and is based in Kolkata, India.

How the Company Makes Money

Grob Tea Co. Ltd. generates revenue through multiple channels, primarily through the sale of its tea products in both retail and bulk quantities. The company sells its products directly to consumers via its e-commerce platform, as well as through partnerships with grocery stores, cafes, and restaurants. Additionally, GROBTEA has established strategic partnerships with distributors that help expand its reach into international markets. Key revenue streams include branded tea bags, loose-leaf teas, and value-added products such as tea-based beverages and accessories. The company also benefits from seasonal promotions and subscription services that encourage repeat purchases, contributing to its overall earnings.

Grob Tea Co. Ltd. Financial Statement Overview

Summary

Grob Tea Co. Ltd. has demonstrated a strong recovery in its financial performance with a significant increase in total revenue by 19.1% from 2024 to 2025. This is accompanied by a substantial improvement in net income, leading to a net profit margin of 8.5% in 2025, up from a loss in the previous year. The company's gross profit margin is healthy at 24.8%, though it has decreased compared to earlier years. EBIT and EBITDA margins have also shown improvement, indicating better operational efficiency.

Income Statement

Grob Tea Co. Ltd. has demonstrated a strong recovery in its financial performance with a significant increase in total revenue by 19.1% from 2024 to 2025. This is accompanied by a substantial improvement in net income, leading to a net profit margin of 8.5% in 2025, up from a loss in the previous year. The company's gross profit margin is healthy at 24.8%, though it has decreased compared to earlier years. EBIT and EBITDA margins have also shown improvement, indicating better operational efficiency.

Balance Sheet

The company's balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.21, suggesting a low level of leverage. The return on equity (ROE) has improved significantly to 11.5%, indicating better profitability. However, the equity ratio has slightly declined, pointing to a higher proportion of assets financed by liabilities. Overall, the balance sheet shows stability with manageable debt levels.

Cash Flow

Cash flow analysis reveals a strong recovery in operating cash flow, which grew significantly from 2024 to 2025. Free cash flow is positive, reflecting efficient capital expenditure management. The operating cash flow to net income ratio is robust, indicating that the company is effectively generating cash from its operations. However, previous years showed some fluctuations, suggesting potential volatility in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.19B	1.19B	994.63M	1.02B	926.16M	1.10B
Gross Profit	672.28M	293.94M	862.36M	857.26M	793.18M	948.22M
EBITDA	169.86M	169.86M	21.87M	73.47M	81.91M	308.24M
Net Income	100.56M	100.56M	-73.00K	6.04M	41.52M	280.23M
Balance Sheet
Total Assets	1.24B	1.24B	1.03B	1.08B	985.43M	931.39M
Cash, Cash Equivalents and Short-Term Investments	29.66M	3.42M	1.66M	3.30M	118.27M	150.40M
Total Debt	183.38M	183.38M	93.53M	118.75M	31.22M	33.59M
Total Liabilities	362.25M	362.25M	241.50M	298.51M	201.28M	178.35M
Stockholders Equity	877.57M	877.57M	786.77M	777.57M	784.15M	753.04M
Cash Flow
Free Cash Flow	0.00	124.83M	-61.74M	-39.97M	78.43M	218.03M
Operating Cash Flow	0.00	194.57M	15.93M	40.18M	122.15M	251.87M
Investing Cash Flow	0.00	-280.35M	21.94M	-125.10M	-109.59M	-174.94M
Financing Cash Flow	0.00	87.53M	-38.24M	80.82M	-10.26M	-79.69M

Grob Tea Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 984.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GROBTEA, the sentiment is Negative. The current price of 984.8 is above the 20-day moving average (MA) of 956.37, below the 50-day MA of 989.34, and below the 200-day MA of 1034.06, indicating a bearish trend. The MACD of -27.59 indicates Positive momentum. The RSI at 36.13 is Neutral, neither overbought nor oversold. The STOCH value of 23.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GROBTEA.

Grob Tea Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNITEDTEA	74 Outperform	₹2.36B	11.10	―	0.67%	―	―
GROBTEA	70 Outperform	₹1.05B	-129.57	―	0.30%	-20.04%	-104.83%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JAYSREETEA	61 Neutral	₹2.38B	3.92	―	0.57%	5.48%	816.63%
HARRMALAYA	58 Neutral	₹2.99B	10.26	―	―	4.81%	―
PKTEA	51 Neutral	₹2.04B	-49.96	―	0.11%	-13.72%	-136.12%
NORBTEAEXP	47 Neutral	₹1.36B	-135.33	―	―	-5.84%	50.29%