Jay Shree Tea (JAYSREETEA)

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

Key Financials

Strengths

• Trades at 0.89 times book value (₹92.66 vs ₹103.86), offering an asset-backed downside cushion.
• Promoter holding of 50.68% aligns management interests with minority shareholders.
• Sales growth of 25.73% shows recent top-line momentum.
• Debt/equity of 0.92 is not extreme for an asset-heavy plantation business.

Concerns

• Latest quarter net loss of ₹2 crore on ₹295 crore sales shows negligible margin and earnings fragility.
• ROCE of only 3.74% indicates poor returns on invested capital.
• Profit growth of -108.29% and Piotroski F-Score of 4/9 signal weak fundamentals and financial stress.
• Dividend yield of 0.61% provides little income support while waiting for a turnaround.

AI Analysis

At ₹92.66, Jay Shree Tea is a ₹236 crore market cap company, but looking at the figures, I struggle to call it a wonderful business. Tea is a commodity, and the economics show it: ROCE is just 3.74%, far below what a durable franchise should earn. The P/E of 207.20 is almost meaningless because earnings have collapsed—profit growth is negative 108.29%, and the latest quarter shows a net loss of ₹2 crore on sales of ₹295 crore. That is razor-thin; any cost pressure wipes out the bottom line. Sales grew 25.73%, but growth without profits does not create value for shareholders. The balance sheet is not terrible, but debt/equity of 0.92 is meaningful for a commodity producer with weak returns. The Piotroski score of 4 out of 9 reinforces my caution about financial health. What might attract a Graham-style investor is the asset angle: book value is ₹103.86, so the stock trades at 0.89 times book value. That provides some downside cushion, unless further losses or impairments erode that book value. The dividend yield of 0.61% means you are not being paid to wait. Promoter holding at 50.68% is a positive—it aligns interests to some extent. But a cheap price can get cheaper, and a poor return on capital is a poor business at almost any price. This is not a great compounding machine; it is a cyclical, asset-backed commodity stock. I would need evidence of sustained margin recovery, lower leverage, and better capital allocation before showing real interest. I prefer predictable businesses with high returns on capital. Jay Shree Tea does not yet meet that test.

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