Norben Tea (NORBTEAEXP)

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

Key Financials

Strengths

• Topline momentum: 49.5% sales growth shows improving demand
• Piotroski F-Score 7/9 indicates improving balance-sheet and operating fundamentals
• Conservative leverage: debt/equity of 0.43 provides financial room
• Positive ROCE of 3.90% suggests operations are approaching capital cost recovery

Concerns

• Price-to-book of 7.09 with ROE of -3.84% signals expensive valuation and value destruction
• Latest quarter net profit is ₹0 Cr, so no earnings support a ₹150 Cr market cap
• Zero dividend yield provides no return to shareholders while waiting
• Tea is a commoditised business with no pricing power or durable moat

AI Analysis

Look at this business the way Graham taught: what is the asset, what can it earn, and what price gives me an edge. Norben Tea is a small tea player in a commodity industry. The market cap is ₹150 Cr, yet the latest quarter delivered only ₹3 Cr of sales and exactly ₹0 Cr of net profit. That means investors are paying a large premium for hope, not earnings. Book value is ₹8.85 per share, so the stock trades at 7.09 times book, while the company earns -3.84% on equity. That is the opposite of Buffett's rule: be willing to pay a fair price for a wonderful business, not a wonderful price for a poor business. Tea has no pricing power, and I see no durable moat. Sales grew 49.5%, and profit growth is reported at 160%, but from a microscopic base. A 3.90% ROCE does not clear the cost of capital; it barely justifies the capital employed. There is no dividend to compensate me for waiting. On the positive side, debt/equity is only 0.43, and a Piotroski F-Score of 7 suggests some operational and balance-sheet repair. This may be a turnaround if management can convert those ₹3 Cr of quarterly sales into real profits and sustain momentum. But with promoter holding at 38.89%, I don't see overwhelming skin in the game. Graham would demand a margin of safety. At ₹62.73, this stock offers none. It belongs in the too-hard pile until the earnings show up in cash profits, not just in growth percentages.

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