McLeod Russel India Limited (MCLEODRUSS) AI Stock Analysis

• Market Cap: ₹3.80B
• Dividend Yield: N/A
• Average Volume (3M): 76.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -6.57%
• EPS Growth: -16.92%
• Country: IN
• Employees: 47,015
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -3.49
• Shares Outstanding: 104,455,734
• 10 Day Avg. Volume: 50,129
• 30 Day Avg. Volume: 76,672
• PEG Ratio: 0.05
• Price to Book (P/B): 6.48
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 7.60
• 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: 42 Neutral
• Price Target: ₹34.00 ▼(-41.61% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily held down by weak financial performance (negative profitability and high leverage) and a bearish technical setup with the price below key moving averages. A negative P/E and lack of dividend data further reduce valuation support, while positive cash flow offers only limited offset.

Positive Factors

High Gross Margin

A near-96% gross margin shows the company extracts substantial value from green leaf processing, reflecting low direct production costs or favorable product mix. This structural production efficiency provides a durable cushion to cover overheads, support export competitiveness and absorb input-price swings over months.

Positive Operating Cash Flow

Consistent positive operating and free cash flows indicate the business converts sales into cash despite accounting losses. This durable cash generation supports working capital, routine capex for processing estates and interest obligations, reducing short-term liquidity stress and enabling incremental reinvestment.

Established Estate Base & Scale

A long-standing estate and processing footprint across major tea regions and export channels is a structural advantage: it secures raw-leaf supply, delivers scale in manufacturing, and sustains institutional buyer relationships. This geographic and operational scale supports stable production over seasons.

Negative Factors

Negative Profitability

Persistent negative EBIT and net margins show costs beyond direct production (distribution, admin, interest or non-operating items) erode profitability. Over a 2–6 month horizon this limits retained earnings, constrains reinvestment and weakens resilience to further margin pressure absent structural cost fixes.

High Leverage

Total debt well above equity creates sustained financial risk: interest and principal commitments consume cash flow, heighten refinancing vulnerability and reduce strategic flexibility. Over months this leverage can magnify shocks to cash generation and limit ability to fund estate upkeep or growth initiatives.

Weak / Negative Revenue Trend

A negative revenue growth rate indicates demand or pricing pressure and limited top-line momentum. Stagnant or shrinking sales undermine operational leverage, impede margin recovery and constrain the firm's ability to deleverage or invest in productivity enhancements over the medium term.

McLeod Russel India Limited Business Overview & Revenue Model

Company Description

McLeod Russel India Limited, together with its subsidiaries, cultivates, processes, manufactures, and sells teas in India and internationally. The company operates tea estates covering 27,360 hectares in India, Vietnam, Uganda, and Rwanda. It also trades in black tea. In addition, the company exports its products to Europe, the Middle East, and North America. The company was founded in 1869 and is based in Kolkata, India.

How the Company Makes Money

McLeod Russel India Limited makes money mainly by producing and selling tea. Its core revenue stream is the sale of made tea manufactured from green leaf harvested on its plantations (tea estates) and processed in its factories. The company typically monetizes this output through bulk sales into the trade, including participation in tea auctions and sales to tea traders/exporters and other institutional buyers; the realized price depends on tea grade, quality, market supply-demand, and geographic origin. Additional revenue may come from related estate activities (such as the sale of tea-related by-products and other plantation/estate income), but specific contributions by category are not available in the provided context and are therefore null.

McLeod Russel India Limited Financial Statement Overview

Summary

Financials are weak overall: despite a very high gross margin, EBIT and net margins have been negative, leverage is high with debt exceeding equity, and ROE is negative. Positive operating/free cash flow provides some support but does not offset profitability and balance-sheet risk.

Income Statement

The company shows consistent revenue, but margins are under pressure. Gross Profit Margin is high at 95.95% in 2025, indicating strong production efficiency. However, negative EBIT and Net Profit Margins over recent years suggest significant challenges in operational efficiency and high costs. Revenue growth has been inconsistent, with a slight increase in 2025 but overall stagnation.

Balance Sheet

The Balance Sheet reflects financial instability. The Debt-to-Equity Ratio is concerning due to high leverage, with Total Debt far exceeding Stockholders' Equity. Return on Equity is negative, highlighting profitability issues. The Equity Ratio has significantly decreased over the years, indicating increased financial risk.

Cash Flow

Operating and Free Cash Flows are positive, indicating some operational cash generating capability. However, Free Cash Flow Growth has been erratic. The Operating Cash Flow to Net Income Ratio is improving but still highlights underlying profitability concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.15B	11.85B	11.18B	13.29B	13.29B	14.02B
Gross Profit	8.43B	11.37B	9.20B	10.99B	9.94B	10.92B
EBITDA	-405.60M	427.20M	-923.57M	-8.23B	781.27M	2.15B
Net Income	-2.76B	-1.98B	-3.12B	-10.57B	-1.81B	-523.91M
Balance Sheet
Total Assets	37.56B	35.94B	35.36B	37.40B	47.63B	49.08B
Cash, Cash Equivalents and Short-Term Investments	355.50M	213.60M	62.83M	139.08M	252.82M	970.91M
Total Debt	19.11B	19.02B	18.92B	19.61B	20.89B	22.61B
Total Liabilities	36.93B	35.38B	32.86B	31.70B	31.14B	30.85B
Stockholders Equity	634.70M	566.40M	2.50B	5.69B	16.49B	18.23B
Cash Flow
Free Cash Flow	185.30M	482.80M	156.97M	1.50B	457.98M	1.48B
Operating Cash Flow	263.30M	724.10M	342.89M	2.05B	1.05B	1.78B
Investing Cash Flow	-67.70M	-189.40M	587.52M	-414.00M	-578.73M	-17.52M
Financing Cash Flow	-74.90M	-504.50M	-996.86M	-1.74B	-1.19B	-1.32B

McLeod Russel India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.23
• 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:MCLEODRUSS, the sentiment is Negative. The current price of 58.23 is above the 20-day moving average (MA) of 39.41, above the 50-day MA of 42.08, and above the 200-day MA of 43.30, indicating a bearish trend. The MACD of -1.82 indicates Positive momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 10.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MCLEODRUSS.

McLeod Russel India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANDHRSUGAR	68 Neutral	₹9.46B	11.48	―	1.06%	16.68%	15.13%
DALMIASUG	68 Neutral	₹24.49B	8.71	―	2.00%	17.71%	18.17%
RANASUG	67 Neutral	₹1.77B	3.78	―	―	8.83%	160.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BAJAJHIND	46 Neutral	₹20.39B	39.15	―	―	-11.72%	-439.12%
MCLEODRUSS	42 Neutral	₹3.80B	-3.57	―	―	-6.57%	-16.92%
SIMBHALS	40 Underperform	₹293.49M	-2.42	―	―	―	―

McLeod Russel India Limited Corporate Events

McLeod Russel Director Amritanshu Khaitan Resigns from Board

McLeod Russel India Limited has announced that non-executive, non-independent director Amritanshu Khaitan has resigned from the company’s board, citing personal reasons and other commitments, with effect from 17 March 2026. The board change, disclosed under SEBI’s Listing Obligations and Disclosure Requirements, signals a shift in the company’s governance line-up, and investors will watch for how the vacancy is addressed and whether it has any bearing on strategic decision-making or board oversight in the coming period.

McLeod Russel Director Amritanshu Khaitan Resigns From Board

McLeod Russel India Limited has announced that non-executive, non-independent director Amritanshu Khaitan has resigned from the company’s board due to personal reasons and other commitments. His resignation, communicated via letter dated 17 March 2026, took effect the same day, and the company has disclosed the change to the stock exchanges and on its website in line with SEBI’s listing regulations.

The departure of Khaitan marks a change in the company’s board composition, though no successor has been named in the disclosure and no other governance changes were indicated. By formally notifying the BSE, NSE and Calcutta Stock Exchange under Regulation 30 of SEBI’s LODR framework, McLeod Russel aims to maintain regulatory compliance and transparency for shareholders and other market participants regarding its board-level changes.

McLeod Russel Insolvency Plea Withdrawn by Financial Creditor

McLeod Russel India Limited has announced that PDK Impex Pvt Ltd, a financial creditor which had filed an insolvency application against the company under Section 7 of the Insolvency and Bankruptcy Code for an alleged default of Rs 10.22 crore, has withdrawn the case. As a result, the National Company Law Tribunal, Kolkata bench, has dismissed the insolvency proceedings as withdrawn, removing a potential legal and financial overhang for the company and offering some relief to stakeholders monitoring its ongoing financial situation.