At a Glance
Goodricke Group is India’s second-largest tea producer, owning 18 lush tea gardens and 22 factories across Darjeeling, Dooars, and Assam. But despite the premium vibe and British legacy, profits have been as bitter as overbrewed green tea. Margins are thin, debt plays peekaboo, and even “Other Income” has had to rescue net profit. Can the stock steep into something stronger?
1. 🪜 Introduction – Brewing Trouble?
If you thought sipping Darjeeling tea makes you classy, imagine running 18 gardens and still losing money.
Goodricke Group Ltd is a tea veteran (estd. 1977), and a proud subsidiary of Camellia Plc (UK), holding 74% stake. But despite its plantation empire spread across 10,311 hectares, this colonial hangover has served more stress than serenity in recent years.
2. 🍃 WTF Do They Even Do?
Here’s what the Goodricke Group does when it’s not sipping Earl Grey:
- Cultivates and processes tea via 18 tea gardens and 22 factories
- Has a diverse tea portfolio — Orthodox, CTC, Darjeeling, Instant Tea
- Owns an instant tea plant at Dooars (because why wait, bro?)
- Sells through auctions, exports and private sales
- Boasts 29 estates under Camellia Plc group in India
They’re certified by Rainforest Alliance, ETP, UTZ — basically, their tea is woke, organic, and politically correct.
3. 📊 Financials – Profit Gaya Chhutti Pe
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Sales | ₹882 Cr | ₹824 Cr | ₹929 Cr |
| Operating Profit | ₹9 Cr | ₹-49 Cr | ₹19 Cr |
| Net Profit | ₹-0.15 Cr | ₹-69 Cr | ₹20 Cr |
| ROE | -0.02% | -32% | 6% |
| EPS | ₹-0.15 | ₹-32.08 | ₹9.29 |
Let’s be honest: FY24 was a horror film. A ₹69 Cr loss, with negative OPM (-6%) — almost made investors switch to coffee.
But FY25 saw some recovery. Net profit returned to ₹20 Cr, and the EPS rose from deep red to a shy ₹9.29. Too early to celebrate? Maybe.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹228
- P/E (TTM): 33.4
- Book Value: ₹125 → P/B = 1.82x
Let’s assume FY26 repeats FY25 profit of ₹20 Cr.
- Mcap: ₹492 Cr
- FY25 PAT: ₹20 Cr → P/E = ~24.6x
- Operating Profit: ₹19 Cr → EV/EBITDA looking uncomfortably high
🧮 Fair Value Range (FV): ₹145 – ₹190
Based on average normalized PAT of ₹15–20 Cr, and 18–25x earnings multiple for FMCG-Agri peers
Stock is not cheap, unless we expect major profit rerating. Spoiler: tea prices alone won’t save it.
5. 🔍 What’s Cooking – Any Kettle Drama?
- FY25 AGM on July 29, 2025 – Keep your teacups ready, updates expected.
- Other Income ₹25 Cr – This is a lifeboat, not a revenue strategy.
- Camellia Plc UK still firmly in charge (74%) – but will they infuse fresh capital? Or just enjoy the estates?
Nothing majorly exciting. No new gardens, IPOs, or FMCG brand ambitions like Tata Consumer. Just… brewing.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
- Debt in FY25: ₹77 Cr (vs ₹126 Cr in FY24)
- Reserves: ₹249 Cr
- Equity Capital: ₹22 Cr
- Debt/Equity: 0.31x (Not scary, but not debt-free)
To their credit, debt reduction is visible. But asset base hasn’t expanded meaningfully, and reserves are still recovering from past burns.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | FCF | CFI | CFF |
|---|---|---|---|---|
| FY24 | ₹-25 Cr | Negative | ₹-18 Cr | ₹44 Cr |
| FY25 | ₹43 Cr | Positive | ₹+9 Cr | ₹-59 Cr |
FY25 operating cash flow is back, but lumpy due to swings in profitability. The company still spends ~₹20 Cr yearly in capex. Working capital is stable, though.
8. 📉 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 5% |
| ROE | 6% |
| OPM | 2% |
| Net Profit Margin | 2.2% |
| Interest Coverage | 2x |
| Inventory Days | 179 |
| CCC | 6 Days ✅ |
Verdict: The tea is fresh, but the margins are stale. Inventory efficiency is improving. But 5% ROCE? We’ve seen better from biscuit companies.
9. 💰 P&L Breakdown – Show Me the Money
- Sales steady at ₹900 Cr zone
- Other income = ₹25 Cr = 1/4th of net profit!
- Operating profit margins fluctuate wildly. 20% one quarter, -38% the next.
- Instant tea and exports could help, but pricing volatility is brutal.
10. 🧾 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Sales (Cr) |
|---|---|---|---|---|
| Tata Consumer | 85.8x | 7% | 14% | ₹17,600+ |
| CCL Products | 36.8x | 17% | 17.8% | ₹3,100+ |
| Jay Shree Tea | 8.5x | 10.7% | 4.4% | ₹858 Cr |
| McLeod Russel | Loss-making | N/A | N/A | ₹1185 Cr |
| Goodricke | 33x | 6% | 2% | ₹929 Cr |
🫖 Goodricke’s margins and ROE are low compared to peers. Even Jay Shree Tea looks more efficient. And CCL is miles ahead.
11. 🧑🌾 Misc – Promoters, Shareholding, Drama?
- Promoter Holding: 74% (Camellia Plc, UK)
- FIIs/DIIs: Essentially zero
- Retail: 26%
Goodricke is firmly a promoter-controlled company. No institutional love, no DII romance. Just mom-n-pop investors hoping for a dividend someday.
Also notable: No dividend since FY23, despite cash flow improving.
12. 🤔 EduInvesting Verdict™
“Good gardens don’t guarantee good governance.”
- Tea quality? Excellent.
- Financial brew? Weak and watery.
- Stock movement? Flat over 5 years.
- Profitability? A Yo-Yo with emotional damage.
Unless Goodricke does a Tata-style FMCG pivot or unlocks exports in a big way, this will stay a range-bound estate play.
☕ You’re not buying tea. You’re buying hope in a cup. And right now, hope trades at 33x earnings.
✍️ Written by Prashant | 📅 July 3, 2025
Tags: Goodricke Group, Tea Stocks India, FMCG Agriculture, Camellia Plc, EduInvesting, Plantation Stocks, Indian Tea Export, undervalued tea stock, Goodricke vs Tata Consumer, Goodricke FY25 Results
