United Nilgiri (UNITEDTEA)
Slow GrowerScore breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹458.3 |
| Market Cap | ₹228.99 Cr |
| P/E Ratio | 10.44 |
| ROCE | 10.06% |
| ROE | —% |
| Dividend Yield | 0.7% |
| Profit Growth | -20.5% |
| Debt/Equity | — |
| Sales Growth | -10.5% |
| Promoter Holding | 49.79% |
| 52-Week Range | ₹412 — ₹590 |
| Sector | Agricultural Food & other Products |
| Book Value | ₹482.82 |
Strengths
- P/E of 11.31 and P/B of 1.17 with book value at ₹465, so the stock is not expensive
- Profit growth of 17.70% backed by a strong latest quarter: ₹5 Cr net profit on ₹24 Cr sales
- Piotroski F-Score of 7/9 indicates solid financial health with low near-term distress risk
- Promoter holding of 49.79% aligns management interests with minority shareholders
Concerns
- Sales growth of just 3.57% shows weak underlying topline momentum
- Dividend yield of 0.60% is low, offering little return while waiting for value to unlock
- ROCE of 10.06% is modest, suggesting limited competitive advantage in a commodity tea business
- ROE and Debt/Equity are not disclosed, leaving leverage and shareholder returns unclear
AI Analysis
At first glance, United Nilgiri reminds me of the kind of slow, unexciting business Graham would call a cigar butt—but not deeply undervalued. The market cap is ₹250 Cr, while trailing earnings at P/E 11.31 imply around ₹22 Cr, and the price stands just 17% above book value of ₹465. I am not paying a rich price. Yet I must ask: what am I getting for that price? A tea and coffee business with only 3.57% sales growth. That is not a wonderful franchise. The 17.70% profit growth is encouraging, but it comes from margins, not from expanding demand. The latest quarter showed ₹24 Cr sales and ₹5 Cr net profit—a strong margin, but one quarter is not a trend. ROCE of 10.06% is mediocre; with no wide moat, tea remains a commodity, and prices can turn against you. The Piotroski score of 7 out of 9 suggests the balance sheet is not under stress. Promoter holding at 49.79% is good—their interests are aligned with mine. But the dividend yield of 0.60% means I am not being paid to wait. If I buy at ₹543, I need either sales growth to accelerate or margins to be sustained. At a PEG of about 1.06, profit growth justifies the price only if it is durable. I would classify this as a slow grower—not a great business, but a possible value situation. My discipline: do not overpay for a commodity name, watch whether the profit growth is real or a cyclical tailwind.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer