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

• Market Cap: ₹1.03B
• Dividend Yield: 0.3%
• Average Volume (3M): 678.00
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.09
• 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): 61.04
• 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: ₹979.00 ▼(-0.59% Downside)
• Action: Upgraded Date: 11/04/25
• Date: Action: Upgraded 11/04/25

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 Recovery

A 19.1% revenue increase in 2025 reflects durable demand recovery and stronger sales execution. Persistent top-line growth enhances scale economics, supports better fixed-cost absorption, and provides a more stable base for reinvestment, pricing power, and long-term margin improvement.

Profitability Improvement

Moving from a loss to an 8.5% net margin demonstrates structural operational improvement and cost control. Sustained margin recovery signals higher quality earnings and better cash conversion, enabling consistent internal funding for capex and reducing reliance on external financing over the medium term.

Low Leverage & Higher ROE

A low D/E of 0.21 and improving ROE to 11.5% indicate a conservative capital structure with rising capital efficiency. This combination supports financial flexibility, resilience to commodity cycles, capacity to pursue strategic investments, and a stronger ability to sustain payouts or weather downturns.

Negative Factors

Eroding Gross Margin

A declining gross margin, even from a healthy level, suggests structural pressure on unit economics—likely from input cost inflation or pricing compression. Persistent margin erosion could limit profitability upside, constrain reinvestment capacity, and increase sensitivity to adverse commodity cycles over months.

Earnings Volatility

Large negative EPS growth and a prior-year loss point to earnings volatility and uneven recovery. Such swings reduce predictability of free cash flow, complicate capital allocation, and may hinder steady dividend or buyback policies until earnings demonstrate consistent stability.

Historic Cash Flow Fluctuations

Although operating cash flow recovered recently and free cash flow is positive, historical fluctuations indicate cash generation can be inconsistent. Continued volatility raises risk for funding cyclical working capital, timing of capex, and preserving liquidity during adverse seasons or lower crop yields.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	820.14M	1.19B	994.63M	1.02B	926.16M	1.10B
Gross Profit	326.89M	293.94M	862.36M	857.26M	793.18M	948.22M
EBITDA	37.97M	169.86M	21.87M	73.47M	81.91M	308.24M
Net Income	-21.79M	100.56M	-73.00K	6.04M	41.52M	280.23M
Balance Sheet
Total Assets	1.38B	1.24B	1.03B	1.08B	985.43M	931.39M
Cash, Cash Equivalents and Short-Term Investments	27.38M	3.42M	1.66M	3.30M	118.27M	150.40M
Total Debt	147.97M	183.38M	93.53M	118.75M	31.22M	33.59M
Total Liabilities	332.49M	362.25M	241.50M	298.51M	201.28M	178.35M
Stockholders Equity	1.05B	877.57M	786.77M	777.57M	784.15M	753.04M
Cash Flow
Free Cash Flow	-136.49M	124.83M	-61.74M	-39.97M	78.43M	218.03M
Operating Cash Flow	-66.81M	194.57M	15.93M	40.18M	122.15M	251.87M
Investing Cash Flow	109.77M	-280.35M	21.94M	-125.10M	-109.59M	-174.94M
Financing Cash Flow	-45.24M	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: Negative
• 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 911.50, above the 50-day MA of 939.85, and below the 200-day MA of 1033.27, indicating a bearish trend. The MACD of -15.98 indicates Negative momentum. The RSI at 44.12 is Neutral, neither overbought nor oversold. The STOCH value of 46.48 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	₹2.55B	10.75	―	0.67%	―	―
GROBTEA	70 Outperform	₹1.03B	4.09	―	0.30%	-20.04%	-104.83%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JAYSREETEA	61 Neutral	₹2.34B	-41.93	―	0.57%	5.48%	816.63%
HARRMALAYA	58 Neutral	₹3.24B	10.14	―	―	4.81%	―
PKTEA	51 Neutral	₹2.62B	166.47	―	0.11%	-13.72%	-136.12%
NORBTEAEXP	47 Neutral	₹1.37B	391.89	―	―	-5.84%	50.29%

Grob Tea Co. Ltd. Corporate Events

Grob Tea Opens One-Year Special Window for Re-Lodgement of Physical Share Transfers

Grob Tea Company Limited has announced the opening of a special one-year window for shareholders to re-lodge transfer requests for physical share certificates that were originally submitted before the April 1, 2019 deadline but were rejected, returned, or left unattended due to documentation deficiencies. The window, which runs from February 5, 2026 to February 4, 2027 in line with a recent SEBI circular, is intended to give affected investors another opportunity to complete pending transfers and move closer to compliance with the broader regulatory push toward dematerialization of shareholdings, which may improve transparency and ease of trading for stakeholders.

The company has published details of this facility in English and Bengali newspapers and made the information available on its website, signaling an effort to reach a wide base of legacy shareholders who may still hold physical certificates. By facilitating these delayed transfers within a defined regulatory framework, Grob Tea aims to regularize older share transactions, reduce operational ambiguities associated with physical holdings, and align its shareholder records more closely with current market and regulatory standards.