Peria Karamalai Tea & Produce Co. Ltd. (PKTEA) AI Stock Analysis

• Market Cap: ₹2.62B
• Dividend Yield: 0.11%
• Average Volume (3M): 624.00
• Price to Earnings (P/E): 166.5
• Beta (1Y): 0.61
• Revenue Growth: -13.72%
• EPS Growth: -136.12%
• Country: IN
• Employees: 1,210
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 1.32
• Shares Outstanding: 3,095,879
• 10 Day Avg. Volume: 300
• 30 Day Avg. Volume: 624
• PEG Ratio: -10.92
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 4.97
• P/FCF Ratio: -31.76
• 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: 51 Neutral
• Price Target: ₹676.00 ▼(-20.50% Downside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Peria Karamalai Tea & Produce Co. Ltd. faces significant challenges, primarily due to negative cash flow and declining profit margins, despite strong revenue growth. Technical indicators show mixed signals, with potential bearish momentum. The stock's valuation appears high given its negative earnings, contributing to a lower overall score.

Positive Factors

Revenue Growth

Sustained 30% revenue growth indicates expanding production or market share in tea sales. Over 2–6 months this supports durable operating scale, helps absorb fixed costs, and provides a base for margin recovery and reinvestment into estates or processing capacity.

Balance Sheet Strength

Very low financial leverage and a strong equity base provide resilience to commodity cycles and operational shocks. This capacity preserves borrowing optionality for capex or working capital, reducing bankruptcy risk and supporting medium-term strategic investments.

Stable Business Model (Tea Production)

An integrated plantation model with direct tea production creates predictable core revenues tied to staple beverage demand. Control of cultivation and processing supports quality consistency and supply reliability, underpinning long-term cash generation if operational issues are addressed.

Negative Factors

Negative Free Cash Flow

Negative operating and free cash flow signal the company cannot currently convert earnings into internally generated liquidity. Over months this constrains capacity to fund maintenance capex, pay suppliers, or build inventories, increasing reliance on external financing and operational risk.

Margin Compression

A sudden, large drop in gross and net margins materially weakens profitability buffers. Persistently lower margins reduce the company's ability to absorb input cost swings (labor, fertilizers, auction price cycles) and limit reinvestment capacity, harming durable earnings quality.

Earnings Volatility

Very large negative EPS growth reflects unstable profitability or one-off losses. Such volatility undermines planning and investor confidence, makes forecasting cash flows harder, and raises the chance management must prioritize liquidity over long-term initiatives in the coming months.

Peria Karamalai Tea & Produce Co. Ltd. Business Overview & Revenue Model

Company Description

The Peria Karamalai Tea and Produce Company Limited produces and distributes tea in India. The company operates through Tea, Investment, and Power segments. Its plantations cover approximately 6,000 acres of land located at Valparai in Coimbatore district, Tamilnadu. The company also offers coffee, black pepper, spices, and fruits. In addition, the company is involved in the generation and distribution of power through solar and wind energy. Further, it invests in financial instruments. The company was incorporated in 1913 and is headquartered in Coimbatore, India.

How the Company Makes Money

PKTEA generates revenue primarily through the sale of its tea products, which include packaged and bulk teas for both domestic and export markets. The company has established key partnerships with distributors and retailers, enhancing its market reach and brand visibility. Additionally, PKTEA has diversified its income streams by venturing into the production and sale of organic agricultural products, leveraging the growing demand for health-conscious food options. The company also benefits from premium pricing on its high-quality offerings, as well as potential subsidies and support for sustainable agricultural practices, further bolstering its financial performance.

Peria Karamalai Tea & Produce Co. Ltd. Financial Statement Overview

Summary

Peria Karamalai Tea & Produce Co. Ltd. shows mixed financial performance. Revenue growth is strong, but declining profit margins and negative cash flow indicate challenges in profitability and cash management. The balance sheet is stable with low leverage, but liquidity concerns exist due to declining cash reserves.

Income Statement

Peria Karamalai Tea & Produce Co. Ltd. experienced varied performance in its income statement. The company achieved a significant revenue increase of 30% in 2025, indicating growth potential. However, the gross profit margin deteriorated from 85% in 2024 to 33% in 2025, and the net profit margin also declined. The company returned to profitability in 2025 with a positive net income, but the EBIT and EBITDA margins improved only slightly. Overall, the company's revenue growth is a positive indicator, but declining margins suggest challenges in maintaining profitability.

Balance Sheet

The balance sheet of Peria Karamalai Tea & Produce Co. Ltd. is relatively strong, with a robust equity base. The debt-to-equity ratio is manageable at 0.22 in 2025, indicating a low level of financial leverage. Stockholders' equity has grown, contributing to an equity ratio of 77%. These factors suggest financial stability, though the decline in cash and cash equivalents from 2024 to 2025 might pose a liquidity concern. Overall, the company exhibits solid financial health with low leverage.

Cash Flow

The cash flow position of Peria Karamalai Tea & Produce Co. Ltd. presents some challenges. The free cash flow turned negative in 2025, and operating cash flow was also negative, reflecting potential cash generation issues. The free cash flow to net income ratio is unfavorable, indicating inefficiencies in cash flow management. Despite substantial financing cash flow, the negative free cash flow growth rate highlights the need for improved cash flow operations. Enhanced operational cash generation is critical for future stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	496.52M	505.71M	388.81M	457.01M	351.64M	586.60M
Gross Profit	354.83M	165.29M	331.70M	425.58M	328.69M	516.09M
EBITDA	17.33M	56.11M	120.45M	19.07M	82.92M	293.18M
Net Income	-42.63M	2.41M	53.98M	-33.63M	5.02M	114.01M
Balance Sheet
Total Assets	2.80B	2.72B	2.28B	2.16B	2.48B	2.04B
Cash, Cash Equivalents and Short-Term Investments	639.08M	679.49M	136.63M	125.23M	29.92M	54.23M
Total Debt	448.84M	462.55M	215.33M	218.43M	509.93M	148.64M
Total Liabilities	617.51M	598.48M	366.31M	340.30M	620.24M	237.12M
Stockholders Equity	2.18B	2.12B	1.91B	1.82B	1.86B	1.81B
Cash Flow
Free Cash Flow	-31.06M	-79.14M	-11.15M	-299.17M	331.17M	8.81M
Operating Cash Flow	-9.60M	-63.51M	12.34M	-290.96M	342.19M	27.11M
Investing Cash Flow	62.78M	-314.04M	53.17M	424.45M	-248.70M	-23.70M
Financing Cash Flow	-40.40M	244.82M	-53.45M	-33.93M	-74.13M	-15.03M

Peria Karamalai Tea & Produce Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 850.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PKTEA, the sentiment is Positive. The current price of 850.35 is above the 20-day moving average (MA) of 790.27, above the 50-day MA of 741.33, and above the 200-day MA of 751.69, indicating a bullish trend. The MACD of 17.78 indicates Negative momentum. The RSI at 71.91 is Negative, neither overbought nor oversold. The STOCH value of 70.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PKTEA.

Peria Karamalai Tea & Produce 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%
NOVAAGRI	54 Neutral	₹2.10B	33.21	―	―	13.15%	-20.51%
PKTEA	51 Neutral	₹2.62B	166.47	―	0.11%	-13.72%	-136.12%
DTIL	43 Neutral	₹1.33B	-5.93	―	0.62%	11.82%	92.76%

Peria Karamalai Tea & Produce Co. Ltd. Corporate Events

Peria Karamalai Tea Opens One-Year Window to Demat Legacy Physical Shares

The Peria Karamalai Tea & Produce Company Ltd. has opened a one-year special window, from February 5, 2026 to February 4, 2027, to enable shareholders to transfer and dematerialise physical shares that were sold or purchased before April 1, 2019. The initiative, undertaken in line with a SEBI circular, also covers previously rejected or unprocessed transfer deeds, with all validated securities to be moved only into demat form.

Shareholders are being urged to use this facility by submitting their requests and documentation to the company’s registrar and share transfer agent, MUFG Intime India Private Limited, at its Coimbatore address or via email. The move is expected to streamline legacy share transfers, reduce paperwork-related bottlenecks, and further align the company’s shareholder records with India’s ongoing shift toward fully dematerialised securities.

Peria Karamalai Tea Launches E-Voting Postal Ballot for Special Resolution

Peria Karamalai Tea & Produce Company has initiated a postal ballot process to seek shareholder approval for a special business item via special resolution, in compliance with the Companies Act, SEBI Listing Regulations and recent Ministry of Corporate Affairs circulars. The company is conducting the process entirely through remote e-voting provided by CDSL, with voting open from 31 December 2025 to 29 January 2026, and has appointed Vinod Kothari & Company as the independent scrutinizer to oversee the ballot, underscoring its focus on regulatory compliance and transparent shareholder engagement.