Rossell India Ltd

₹ 275 2.53%
30 Sep - close price
About

Rossell India Ltd was incorporated in 1994 by Mr. H.M. Gupta [1] as Rossell Tea Ltd. It added Aviation and Defence manufacturing and service capabilities for its growth. On 19th April 2011, the company named itself Rossell India Ltd to represent its diverse business. The company has two divisions, namely Tea and Aerospace Defence (Engineering, Manufacturing, and Services). It has spent 27 years in the Tea division and 9 years in the A&D division. [2] The company’s promoter has around three decades of experience in the tea industry. In FY 2013, the company entered the hospitality division but was discontinued from October 1, 2019. [3]

Key Points

Business Segments
The Company is engaged in the following businesses:
Rossell Tea Division:
Cultivation, Manufacture, and Sale of Black Tea. (primarily the orthodox variety of tea)
Segment contributed 46% of Revenue in FY20 [1] which used to be 75% in FY16. [2]

  • Market Cap 1,010 Cr.
  • Current Price 275
  • High / Low 338 / 113
  • Stock P/E 42.6
  • Book Value 67.1
  • Dividend Yield 0.11 %
  • ROCE 9.17 %
  • ROE 10.2 %
  • Face Value 2.00

Pros

  • Company has delivered good profit growth of 54.6% CAGR over last 5 years

Cons

  • Stock is trading at 4.10 times its book value
  • Tax rate seems low
  • Company has a low return on equity of 12.6% over last 3 years.
  • Company might be capitalizing the interest cost

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
66.18 104.45 90.59 54.20 63.69 100.63 91.43 66.53 65.20 94.72 84.34 54.77 69.63
53.04 67.83 81.84 64.63 44.36 50.08 77.06 82.33 54.07 61.28 72.35 66.51 57.57
Operating Profit 13.14 36.62 8.75 -10.43 19.33 50.55 14.37 -15.80 11.13 33.44 11.99 -11.74 12.06
OPM % 19.85% 35.06% 9.66% -19.24% 30.35% 50.23% 15.72% -23.75% 17.07% 35.30% 14.22% -21.44% 17.32%
0.41 0.80 -0.81 2.66 0.32 -1.12 0.80 0.88 7.21 0.74 0.51 2.39 0.48
Interest 2.62 2.88 2.77 2.51 4.84 4.32 3.89 3.39 2.79 2.55 2.75 1.90 3.37
Depreciation 2.32 2.35 2.18 2.19 2.24 3.35 3.32 3.02 3.03 3.22 3.25 2.95 3.31
Profit before tax 8.61 32.19 2.99 -12.47 12.57 41.76 7.96 -21.33 12.52 28.41 6.50 -14.20 5.86
Tax % 16.14% 12.49% 34.11% -50.84% 27.45% 5.39% 10.05% -7.27% 9.74% 11.47% 12.92% 13.03% 10.58%
Net Profit 7.22 28.17 1.97 -18.81 9.12 39.51 7.16 -22.88 11.30 25.15 5.66 -12.35 5.24
EPS in Rs 1.97 7.68 0.54 -5.13 2.49 10.77 1.95 -6.23 3.08 6.85 1.54 -3.37 1.43
Raw PDF

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
77 82 106 141 140 161 163 198 249 309 322 299 303
51 56 77 104 120 137 159 185 228 260 253 254 258
Operating Profit 26 26 29 37 20 24 4 13 21 50 69 45 46
OPM % 34% 31% 28% 26% 14% 15% 2% 7% 8% 16% 22% 15% 15%
1 -0 15 4 3 5 3 2 0 3 -0 11 4
Interest 1 1 2 9 7 7 6 7 11 12 16 10 11
Depreciation 2 2 3 4 10 10 9 10 10 9 12 12 13
Profit before tax 24 23 39 29 6 12 -8 -2 0 32 41 33 27
Tax % 20% 18% 22% 29% 30% 21% 83% 115% -46% 42% 20% 10%
Net Profit 19 19 30 20 4 10 -1 0 1 19 33 30 24
EPS in Rs 5.25 5.10 8.25 5.56 1.09 2.61 -0.36 0.07 0.16 5.05 8.97 8.11 6.45
Dividend Payout % 8% 8% 6% 9% 46% 19% -56% 0% 0% 4% 3% 4%
Compounded Sales Growth
10 Years: 14%
5 Years: 13%
3 Years: 6%
TTM: -6%
Compounded Profit Growth
10 Years: 2%
5 Years: 55%
3 Years: 244%
TTM: -22%
Stock Price CAGR
10 Years: 24%
5 Years: 22%
3 Years: 76%
1 Year: 77%
Return on Equity
10 Years: 6%
5 Years: 8%
3 Years: 13%
Last Year: 10%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
7 7 7 7 7 7 7 7 7 7 7 7
Reserves 144 160 187 205 203 211 162 161 162 179 209 239
13 9 58 58 55 72 81 100 130 195 177 153
10 10 18 24 26 29 26 29 39 52 43 49
Total Liabilities 174 187 271 294 292 318 277 298 338 433 436 448
112 117 181 197 199 212 174 176 172 166 242 234
CWIP 0 0 0 2 1 2 6 8 15 92 11 9
Investments 36 37 61 68 49 46 21 18 19 19 19 19
27 32 29 28 43 57 77 96 132 156 164 186
Total Assets 174 187 271 294 292 318 277 298 338 433 436 448

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
14 21 21 24 -2 7 -4 -3 -5 28 35 34
-2 -9 -74 -24 7 -18 5 -8 -13 -82 -4 -0
-14 -7 48 -3 -5 12 1 9 19 53 -33 -33
Net Cash Flow -3 5 -5 -3 -0 2 2 -3 1 -0 -1 1

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 13 27 24 9 46 46 41 27 27 31 33 40
Inventory Days 607 557 514 421 489 604
Days Payable 99 110 93 97 45 116
Cash Conversion Cycle 13 27 24 9 46 46 549 474 448 354 478 528
Working Capital Days 20 23 -17 -27 10 26 54 82 106 103 135 161
ROCE % 16% 14% 13% 13% 4% 6% -2% 2% 4% 13% 15% 9%

Shareholding Pattern

Numbers in percentages

Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
74.87 74.87 74.91 74.91 74.91 74.91 74.91 74.91 74.91 74.91 74.91 74.91
7.67 7.67 7.67 7.67 7.47 7.41 7.29 0.70 0.00 0.47 1.46 1.51
0.24 0.26 0.25 0.25 0.25 0.25 0.25 0.38 0.27 0.24 1.24 1.77
17.22 17.20 17.17 17.17 17.37 17.43 17.55 24.01 24.82 24.37 22.39 21.81

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