This Microcap stock which operates in the cultivation, manufacture, and sale of tea business of up 6 percent after the the company sold its tea estate to Rossell India for Rs. 64.20 crore.
Price Action (WA:ACT)
With a market capitalization of Rs. 184.58 Crores, the shares of James Warren Tea Ltd (BO:WRRN) were up by 5.7 percent in the day’s trade touching a day’s high of Rs. 425 per share. The stock reiterated from the day’s high and was trading at Rs. 419.50 per share which is 4.33 percent higher than the previous closing price of Rs. 402.10 apiece. The stock has delivered a return of 58 percent, outperforming the Nifty Index from past year basis.
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What Happened
The company has recently made an agreement with Rossell India on December 9th, 2024 to sell their Dhoedaam Tea Estate located at Borhapjan, Tinsukia District, Assam. The tea estate made a turnover of Rs. 29.50 crore approx in the last financial year with 25.30 percent approx contributing to the topline. The consideration was Rs. 64.20 crore.
About the Company
James Warren Tea Ltd was incorporated in 1983. They specialize in the cultivation, manufacture, and marketing of tea which is primarily from its estates in Assam. They produce both CTC and orthodox teas by selling through auction and private channels.
They focus on quality and have a strong export presence in markets like Europe and the USA. Their business model concentrates on leveraging its heritage and expertise to maintain high-quality standards while expanding its market reach domestically and internationally.
Products and services
The company offers a range of high-quality teas which includes CTC and orthodox varieties and primarily sourced from their Assam estates. Their products include single-estate teas, packaged loose teas, and tea bags. The company focuses on freshness and quality, ensuring all teas are hand-plucked and adhere to strict safety standards, catering to both domestic and international markets.
Financials & Ratios
Its Revenue from operations grew by 50 percent year on year from Rs. 50 Crores in
Q2FY24 to Rs. 75 Crores in Q2FY25, accompanied by a profit of Rs. 17 Crores to a profit of Rs. 38 Crores.
In terms of Return ratios, the company has a return on capital employed (ROCE) of 1.54 percent and the return on equity (RoE) stood at 1.99 percent. The net profit margin stood at 1.61 percent and the debt-to-equity ratio stood at 0 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 68.61 percent in James Warren Tea, Domestic Institutional Investors (DII) holding around 0.01 percent, and public holdings standing at 31.39 percent.
Written by Santhosh S
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