Jay Shree Tea & Industries Ltd. (JAYSREETEA) AI Stock Analysis

• Market Cap: ₹2.18B
• Dividend Yield: 0.57%
• Average Volume (3M): 7.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: 5.48%
• EPS Growth: 816.63%
• Country: IN
• Employees: 19,402
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): -0.52
• Shares Outstanding: 28,877,487
• 10 Day Avg. Volume: 12,571
• 30 Day Avg. Volume: 7,602
• PEG Ratio: <0.01
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -2.13
• 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: 61 Neutral
• Price Target: ₹80.00 ▼(-7.99% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Jay Shree Tea & Industries Ltd. has a moderate overall stock score driven by a recovering financial performance and attractive valuation. However, technical indicators suggest a lack of strong momentum, and cash flow challenges present risks. The low P/E ratio indicates potential undervaluation, providing some upside potential.

Positive Factors

Revenue Growth

Sustained revenue growth (~9% reported) reflects improving demand and price realization for produced tea. For a plantation-to-product business, steady top-line expansion supports long-term cash generation potential, underpins margin recovery, and provides a broader base for reinvestment in estates and processing over the next 2-6 months.

Improved Profitability

Margins have recovered materially, with gross profits remaining strong and net margins moving to positive. This indicates more efficient processing and cost control versus prior years. Durable margin improvement enhances ability to service liabilities, fund estate upkeep, and sustain operations through seasonal cycles, improving medium-term resilience.

Balanced Financing

A moderate debt-to-equity position suggests management uses debt prudently alongside equity, preserving funding for capital-intensive plantation upkeep and factory operations. This balanced capital structure supports strategic investments without immediate heavy dilution, maintaining operational flexibility across planting cycles and harvest seasons.

Negative Factors

Weak Cash Flow

Persistent negative operating cash flow undermines free cash flow and limits internal funding for replanting, irrigation, or factory maintenance. Over a 2-6 month horizon, weak cash conversion raises reliance on external financing, increases liquidity risk during off-seasons, and constrains the company's ability to absorb price or yield shocks.

Liability-Funded Assets

A sizeable portion of assets financed through liabilities heightens sensitivity to margin compression or cost increases. If tea prices or yields deteriorate, higher liabilities could strain coverage ratios and reduce headroom for capital expenditure, making the business more vulnerable to adverse structural shocks in the medium term.

Operational Volatility

Historical swings in EBIT/EBITDA point to exposure to weather, yield variability and commodity price swings inherent in plantations. This structural volatility complicates predictable cash flows and planning, forcing larger buffers or external capital to manage seasonal dips and invest in long-term estate improvements.

Jay Shree Tea & Industries Ltd. Business Overview & Revenue Model

Company Description

Jay Shree Tea & Industries Limited manufactures and sells tea in India and internationally. It operates through Tea, Chemical & Fertilizer, and Sugar segments. The company also manufactures and markets sugar; and chemicals and fertilizers, such as single super phosphate offered under the Annapurna brand, sulphuric acid, and oleum. In addition, it offers warehousing services, as well as engages in the investment and non-banking financial activities. The company was incorporated in 1945 and is headquartered in Kolkata, India.

How the Company Makes Money

Jay Shree Tea & Industries Ltd. generates revenue primarily through the sale of its tea products, which include bulk tea, packaged tea, and specialty blends. The company earns money by selling its teas to wholesalers, retailers, and directly to consumers, both through traditional distribution channels and online platforms. Key revenue streams also include exports to international markets, where the company capitalizes on the growing demand for Indian teas. Additionally, JAYSREETEA benefits from strategic partnerships with distributors and retailers, enhancing its market reach and brand visibility. The company's investments in quality control and sustainable practices further contribute to its competitive edge and profitability.

Jay Shree Tea & Industries Ltd. Financial Statement Overview

Summary

Jay Shree Tea & Industries Ltd. shows a recovering financial position with positive revenue growth and improved profitability metrics. However, cash flow management remains a challenge with negative operating cash flow impacting free cash flow growth. The balance sheet shows moderate leverage but indicates potential risk if liabilities increase.

Income Statement

Jay Shree Tea & Industries Ltd. has shown a positive revenue growth with an increase from the previous year. Gross profit margins have remained relatively strong, indicating efficient cost management, while the net profit margin has improved significantly, turning from negative to positive, which shows recovery in profitability. EBIT and EBITDA margins have also improved, suggesting better operational efficiency. However, fluctuations in EBIT and EBITDA in past years suggest potential volatility in operational performance.

Balance Sheet

The company's debt-to-equity ratio is moderate, showing a balanced approach to financing through debt and equity. Return on equity has improved, reflecting better profitability relative to equity. However, the equity ratio indicates that a significant portion of the assets is financed by liabilities, which may pose a risk if liabilities increase or profitability declines.

Cash Flow

Cash flow management appears challenging, as operating cash flow has been negative in recent years, impacting free cash flow growth negatively. The operating cash flow to net income ratio indicates inefficiencies, as cash flow generation is not aligned with reported net income. The free cash flow to net income ratio also highlights that generating sufficient cash to cover net income remains a challenge.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.87B	8.58B	7.62B	8.13B	6.50B	7.67B
Gross Profit	4.61B	4.11B	3.97B	4.51B	3.25B	4.19B
EBITDA	1.39B	1.41B	590.44M	92.59M	308.66M	764.29M
Net Income	1.27B	1.27B	129.90M	-471.40M	236.23M	190.55M
Balance Sheet
Total Assets	0.00	9.90B	10.44B	9.18B	9.48B	9.45B
Cash, Cash Equivalents and Short-Term Investments	79.37M	80.40M	97.80M	73.40M	130.44M	190.03M
Total Debt	0.00	3.26B	3.23B	3.17B	4.34B	3.90B
Total Liabilities	-4.19B	5.71B	7.53B	6.96B	6.73B	7.04B
Stockholders Equity	4.19B	4.19B	2.91B	2.21B	2.75B	2.41B
Cash Flow
Free Cash Flow	0.00	-1.25B	-741.70M	-500.60M	-57.60M	881.04M
Operating Cash Flow	0.00	-799.72M	-164.24M	-363.70M	104.95M	1.21B
Investing Cash Flow	0.00	-39.50M	326.20M	383.40M	339.61M	1.05B
Financing Cash Flow	0.00	-460.90M	-156.98M	-404.10M	-426.96M	-2.38B

Jay Shree Tea & Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 86.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:JAYSREETEA, the sentiment is Negative. The current price of 86.95 is above the 20-day moving average (MA) of 82.17, above the 50-day MA of 83.78, and below the 200-day MA of 96.65, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 15.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:JAYSREETEA.

Jay Shree Tea & Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNITEDTEA	74 Outperform	₹2.52B	10.75	―	0.67%	―	―
GROBTEA	70 Outperform	₹1.05B	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	₹2.18B	-41.93	―	0.57%	5.48%	816.63%
PKTEA	51 Neutral	₹2.40B	166.47	―	0.11%	-13.72%	-136.12%
DTIL	43 Neutral	₹1.43B	-5.93	―	0.62%	11.82%	92.76%