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The Grob Tea Co Ltd logo

The Grob Tea Co Ltd

NSE: GROBTEA BSE: 538367

855

(0.91%)

Sun, 05 Apr 2026, 03:27 pm

The Grob Tea Co Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (22.3x coverage).
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Cons

  • Grob Tea has only been paying a dividend for 3 years, and since then there has been no growth.
  • Whilst dividend payments have been stable, Grob Tea has been paying a dividend for less than 10 years.
  • Grob Tea's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Grob Tea's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Grob Tea is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Grob Tea is profitable, therefore cash runway is not a concern.
  • Grob Tea is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 2.8x debt.
  • Grob Tea's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 12.3x coverage).
  • Grob Tea's level of debt (32.3%) compared to net worth is satisfactory (less than 40%).
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Cons

  • Operating cash flow is negative therefore debt is not well covered.
  • The level of debt compared to net worth has increased over the past 5 years (17.2% vs 32.3% today).
  • High level of physical assets or inventory.

misc

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Pros

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    Cons

    • Grob Tea is not covered by any analysts.
    • Grob Tea has significant price volatility in the past 3 months.

    past

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    Pros

    • Grob Tea's year on year earnings growth rate has been positive over the past 5 years.
    • Grob Tea has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • Grob Tea has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
    • Grob Tea used its assets less efficiently than the IN Food industry average last year based on Return on Assets.
    • Grob Tea has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Grob Tea has become profitable in the last year making it difficult to compare the IN Food industry average.

    value

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    Pros

    • Grob Tea is good value based on assets compared to the IN Food industry average.
    • Grob Tea is good value based on earnings compared to the IN Food industry average.
    • Grob Tea is good value based on earnings compared to the India market.
    • GROBTEA outperformed the Market in India which returned -14.5% over the past year.
    • NSEI:GROBTEA is up 15.2% outperforming the Food industry which returned 5% over the past month.
    • NSEI:GROBTEA is up 15.2% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Grob Tea's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Grob Tea's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • GROBTEA underperformed the Food industry which returned 18.8% over the past year.

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    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800