By Prashant Marathe | 23 May 2025 | EduInvesting

📌 At a Glance

India’s oldest listed tea estate, The United Nilgiri Tea Estates Co. Ltd., just dropped its FY25 results and they’re as clean as a morning Darjeeling brew.

☑️ Revenue up
☑️ Profit stable
☑️ ₹2 dividend declared
☑️ Auditors gave a 100% unmodified opinion
☑️ But stock still trades at just ₹432 despite solid financial roots

So what’s brewing under the leaves?

🧾 FY25 Financial Highlights (Standalone)

📈 Quote Value High: ₹9.35 gain intraday (+2.21%) post-results optimism

💸 Dividend Alert

• Final dividend for FY25: ₹2 per share
• Face Value: ₹10
• Yield: ~0.46% at CMP ₹432
• Payout Ratio: Likely conservative, tea companies love retaining capital

This marks another year of consistent dividend signalling — perfect for conservative investors or chai enthusiasts with long-term SIPs.

✅ Auditor’s Opinion

Filed under SEBI Regulation 33 and 52:

• ✅ Unmodified audit report (i.e. clean)
• ✅ No qualifications
• ✅ Declaration filed affirming financials are free from any red flags

Translation: No cooking of books. Only brewing of tea.

📦 Other Board Decisions (23 May 2025)

• 📜 Audited results approved
• 🎉 Dividend recommended
• 🧾 Declaration under Regulation 33(3)(d) submitted to NSE
• 🕘 Board meeting timing: 10:00 AM to 1:30 PM — precise like English breakfast

🧠 EduInvesting Take

United Nilgiri Tea is not a rocket stock. But here’s what it is:

• Debt-free (or close to it)
• Land-rich (prime Nilgiri foothills)
• Paying dividends
• Highly under-owned by institutions

Yet, it trades at P/E below 15, P/B well under 1, and gets zero media coverage.

Maybe it’s boring.

Maybe that’s the point.

🔍 But Why Isn’t the Stock Booming?

Simple.

🟡 Tea sector is low-margin, weather dependent
🟡 No flashy growth like Mamaearth or sugar IPOs
🟡 Retail investors chase momentum — not 150-year-old plantations
🟡 Global tea consumption slowing vs coffee or kombucha

That said — at ₹432 CMP, it looks undervalued for anyone seeking:

• Defensive stock
• Regular dividend
• Land-backed business

📈 Forward View

If FY26 sees rainfall stability, inflation easing, and a better global auction rate…

This stock can quietly inch to ₹500–550 zone in 6–9 months. Not viral. But viable.

🏷️ Tags

United Nilgiri Tea FY25, Tea Sector Results 2025, Nilgiri Estates Dividend, EduInvesting, SEBI Regulation 33, CMP ₹432, High Dividend Tea Stocks, NSE UTDNILTEA, Plantation Stocks India