United Nilgiri Tea Estates Co. Ltd. (UNITEDTEA) AI Stock Analysis

• Market Cap: ₹2.52B
• Dividend Yield: 0.67%
• Average Volume (3M): 6.16K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 1,127
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 10.65
• Shares Outstanding: 4,996,566
• 10 Day Avg. Volume: 3,958
• 30 Day Avg. Volume: 6,164
• PEG Ratio: 0.72
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 2.04
• P/FCF Ratio: 11.54
• 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: 74 Outperform
• Price Target: ₹566.00 ▲(23.55% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is driven primarily by strong financial quality—high margins, improving earnings, and a zero-debt balance sheet—partly offset by variability in operating profitability and free cash flow. Technicals are moderately positive (price above key moving averages with positive MACD), and valuation is supportive due to a low P/E, though the dividend yield is modest.

Positive Factors

High margins

Consistently high gross margins (~71–76%) and healthy net margins (~14–19%), with FY2025 net income rising, indicate durable profitability rooted in estate-owned cultivation and processing. Structural margin strength supports persistent cash generation, pricing resilience against input swings and funding for reinvestment and maintenance capex.

Conservative balance sheet

Zero reported debt and steadily rising equity produce a conservatively financed capital structure. Low leverage materially reduces insolvency risk, preserves strategic optionality to fund estate improvements or weather seasonal cycles, and underpins long-term operational stability and financing flexibility.

Strong cash quality in latest year

FY2025 operating cash flow exceeding net income and positive free cash flow (~175m, ~83% of net income) demonstrates current earnings quality and cash conversion. This available cash supports capex, working capital and selective shareholder returns, increasing financial flexibility for durable operational investments.

Negative Factors

Cash flow and margin volatility

Cash generation has been uneven — negative free cash flow in FY2020 and a sharp FCF drop in FY2024 versus FY2023 — and operating margins have shown dips. Such variability, likely tied to harvest cycles, input costs and working-capital swings, complicates multi-year capital allocation and consistent returns.

Top-line inconsistency

Reported multi-year revenue growth of -7.34% signals aggregate top-line contraction over the measured period. Even with a FY2025 step-up noted elsewhere, the negative multi-year trend suggests vulnerability to demand cycles, pricing pressure or volume variability that can limit sustainable scale and long-term growth prospects.

Moderate returns on equity

Returns on equity are modest (roughly 5.9%–8.4%), reflecting a capital‑intensive, land-based business with limited asset turnover. Moderate ROE constrains the company’s capacity to generate high shareholder returns absent material gains in efficiency, margin expansion or higher asset utilization over time.

United Nilgiri Tea Estates Co. Ltd. Business Overview & Revenue Model

Company Description

The United Nilgiri Tea Estates Company Limited engages in growing, manufacturing, and selling teas in India. It offers black, special, green, herbal, and gift teas. The company is also involved in letting-out of properties. It also exports its products to Australia, Congo, Canada, Germany, the Netherlands, Denmark, Finland, Japan, the United States, and the United Kingdom. The company was incorporated in 1922 and is based in Coimbatore, India.

How the Company Makes Money

United Nilgiri Tea Estates Co. Ltd. Financial Statement Overview

Summary

Strong profitability with consistently high gross margins and healthy net margins, plus a conservative balance sheet with zero debt and steadily rising equity. Cash flow is solid in the latest year (operating cash flow exceeds net income and free cash flow is positive), but operating margin and free-cash-flow consistency have been volatile year-to-year, which tempers the score.

Income Statement

Revenue has trended upward over the period, with a solid step-up in FY2025 (annual revenue growth ~7% vs near-flat in FY2024/FY2023). Profitability is a clear strength: gross margin is consistently high (~71%–76%) and net margin remains healthy (~14%–19%), with FY2025 net income rising to ~185m. The main offset is some volatility in operating profitability (EBIT margin dips in FY2025 vs FY2024), suggesting earnings can fluctuate year-to-year despite strong headline margins.

Balance Sheet

The balance sheet is conservatively positioned with zero debt across all reported years, which materially lowers financial risk. Equity has steadily grown (from ~1.54b in FY2020 to ~2.21b in FY2025), supporting asset growth as well. Returns on equity are moderate but improving (roughly ~5.9%–8.4%), indicating decent profitability without leverage—strong safety profile, though not a high-return balance sheet.

Cash Flow

Cash generation is generally supportive of reported earnings: FY2025 operating cash flow (~212m) exceeds net income, and free cash flow is positive (~175m) at ~83% of net income. However, cash flow has been uneven, including negative free cash flow in FY2020 and a sharp drop in free cash flow in FY2024 versus FY2023, pointing to variability in conversion and/or spending needs. Overall, the latest year is strong, but consistency is the key watch item.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	889.91M	992.94M	840.15M	829.32M	748.62M	649.50M
Gross Profit	718.15M	759.35M	616.20M	594.69M	547.35M	470.17M
EBITDA	296.98M	248.61M	239.86M	186.74M	163.77M	175.53M
Net Income	228.07M	185.10M	160.53M	121.15M	102.89M	122.46M
Balance Sheet
Total Assets	0.00	2.33B	2.17B	1.98B	1.87B	1.77B
Cash, Cash Equivalents and Short-Term Investments	395.99M	395.99M	258.83M	263.75M	191.04M	226.61M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	-2.21B	125.94M	127.02M	109.66M	115.97M	115.90M
Stockholders Equity	2.21B	2.21B	2.04B	1.87B	1.75B	1.66B
Cash Flow
Free Cash Flow	0.00	175.33M	57.94M	105.77M	12.86M	44.56M
Operating Cash Flow	0.00	211.84M	78.26M	150.57M	54.61M	87.74M
Investing Cash Flow	0.00	-192.93M	-44.19M	-132.12M	-31.95M	-91.05M
Financing Cash Flow	0.00	-13.48M	-18.49M	-13.49M	-13.49M	-13.49M

United Nilgiri Tea Estates Co. 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%
PKTEA	51 Neutral	₹2.40B	166.47	―	0.11%	-13.72%	-136.12%
NORBTEAEXP	47 Neutral	₹1.45B	391.89	―	―	-5.84%	50.29%
DTIL	43 Neutral	₹1.43B	-5.93	―	0.62%	11.82%	92.76%

United Nilgiri Tea Estates Co. Ltd. Corporate Events

United Nilgiri Tea Estates Approves Interim Dividend, Results and Director Reappointment

United Nilgiri Tea Estates Company’s board has approved the unaudited financial results for the quarter and nine months ended 31 December 2025, signaling continued regulatory compliance and disclosure to the market. The board also declared an interim dividend of Rs 1 per equity share for the 2025-26 financial year, with 18 February 2026 set as the record date, underscoring the company’s intention to return cash to shareholders. In addition, the company reappointed Mr. R. Rajkumar as whole-time director, affirming that he is not debarred by any regulatory authority, and moved to seek shareholder approval for his reappointment via a postal ballot, for which an independent scrutinizer has been appointed to ensure a fair and transparent voting process.