Tyroon Tea Co. (526945)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Trading at a 28% discount to book value (P/B 0.72, BV ₹144 vs price ₹103.50)
• ROCE of 9.45% indicates some underlying return on capital employed
• Sales broadly stable with only -0.44% decline, no top-line collapse
• Small market cap of ₹35 Cr offers niche, potentially acquisition-worthy assets

Concerns

• Net profit effectively zero in latest quarter; profit growth down 97.45%
• ROE at -7.07% means the company is destroying equity value
• Piotroski F-Score of 3/9 signals weak financial health
• No dividend yield and promoter holding not disclosed, leaving governance opacity

AI Analysis

When I look at Tyroon Tea, I see a classic asset play, not a growing business. At ₹103.50, the market caps this company at just ₹35 crore, while the book value stands at ₹144 per share. That means I am being offered the assets at a 28% discount, which always catches my attention. But a cheap price alone is never enough. The latest quarter shows sales of ₹14 crore and net profit of essentially zero, while profit growth has collapsed by 97.45%. ROE is deeply negative at -7.07%, so the company is currently destroying shareholder value, not creating it. The Piotroski F-Score of 3/9 reinforces that the financial health is weak. Still, the ROCE at 9.45% suggests the underlying capital base can earn something, even if equity holders are suffering from leverage or low margins. Sales growth is nearly flat at -0.44%, so there is no top-line collapse, just a severe profit squeeze. As Graham would say, this is a bargain only if the assets are real and the business can survive. With no dividend, no promoter holding disclosed, and insufficient data for a FairStock score, I cannot call this a quality compounding machine. It is an asset play, perhaps a turnaround if the tea business finds pricing power. But I would need proof of earnings recovery before putting real money to work. The margin of safety in book value is real, yet earnings must eventually follow. For now, I watch and wait.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer