🧠 At a Glance
Andrew Yule & Company Ltd is a century-old, government-owned CPSE that makes tea, transformers, industrial fans — and losses. Despite being in business since 1919, the company still can’t decide if it’s a tea estate, a switchgear shop, or an antique. With negative margins, zero dividend, and ROE below sea level, this PSU is held up by nostalgia and government funding, not business performance.
✈️ 1. Introduction with Hook
It’s not every day you find a company that sells tea and transformers in the same breath.
But Andrew Yule is no ordinary stock.
It’s a living relic from the British Raj, nationalized in 1979, and since then has become the PSU equivalent of that one uncle who keeps switching careers every 2 years and still borrows ₹500 at every family function.
🏭 2. WTF Do They Even Do?
Here’s what Andrew Yule says it does:
- Grows and sells tea
- Manufactures power transformers
- Builds switches, fans, circuit breakers
- Sells tea machinery
- Undertakes turnkey industrial projects
Here’s what Andrew Yule actually does:
- Burns cash
- Delivers negative operating margins
- Occasionally remembers to file results
💰 3. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 |
|---|---|
| Revenue | ₹312 Cr |
| Net Profit | ₹ -3 Cr |
| Operating Margin | -20% |
| ROE | -0.84% |
| Book Value | ₹6.93 |
| Market Cap | ₹1,519 Cr |
| EPS | ₹ -0.06 |
- 10-year sales CAGR: -2%
- 10-year profit CAGR: LOL
- Last dividend payout: Iss ka bhi “turnaround story” ban gaya
📉 4. Valuation – Is It Cheap, Meh, or Crack?
- Price / Book: 4.48x 🤯
- No P/E (because… losses)
- Fair Value Estimate: ₹10 – ₹14 based on historical EV/sales, NAV-based valuations, and PSU discount.
So yes, current price of ₹31 = pure crack, unless you believe in unicorns, CPSE re-ratings, or supernatural tea margins.
🍵 5. What’s Cooking – News, Triggers, Drama
- OFS in Veedol stake (June 2025) — raised some cash. Not used for shareholder returns.
- Director (Planning) quit, KMPs shuffled — musical chairs continues.
- Tea segment — consistently loss-making despite rising auction prices.
- Transformer biz — theoretically promising, but revenue hasn’t sparked.
🧾 6. Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Total Liabilities | ₹752 Cr |
| Reserves | ₹241 Cr |
| Borrowings | ₹105 Cr |
| Fixed Assets | ₹192 Cr |
| CWIP | ₹61 Cr |
| Investments | ₹244 Cr |
Solid-looking balance sheet… until you realize they’ve had 12 consecutive years of mediocrity with those assets.
💸 7. Cash Flow – Sab Number Game Hai
| FY25 | ₹ Cr |
|---|---|
| Cash from Ops | ₹ -11 Cr |
| Cash from Investing | ₹ +26 Cr |
| Cash from Financing | ₹ -15 Cr |
| Net Cash Flow | ₹ -1 Cr |
Basically, nothing meaningful is being reinvested into growth. Negative operating cash flow? Classic PSU fashion.
📊 8. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | -4.89% |
| ROE | -0.84% |
| OPM | -20% |
| Debtor Days | 146 😬 |
| Inventory Days | 134 |
| Cash Conversion Cycle | -72 (but only because payables are huge) |
🧮 Interpretation:
Operations are inefficient, working capital is bloated, and you still want multibagger returns?
💥 9. P&L Breakdown – Show Me the Money
| FY25 Segment | ₹ Cr |
|---|---|
| Revenue | ₹312 Cr |
| Operating Profit | ₹ -64 Cr |
| Other Income | ₹64 Cr |
| Net Profit | ₹ -3 Cr |
Let’s be real: they’re surviving on interest income, rent, and government grace — not operations.
🧯 10. Peer Comparison – Who Else in the Game?
| Company | Sales (Cr) | OPM | ROE | P/BV | CMP |
|---|---|---|---|---|---|
| Tata Consumer | ₹17,618 | 14% | 7% | 5.4x | ₹1,089 |
| CCL Products | ₹3,105 | 17.8% | 17% | 6.0x | ₹885 |
| Goodricke | ₹929 | 2% | 5.8% | 1.8x | ₹230 |
| Andrew Yule | ₹312 | -20% | -0.84% | 4.48x | ₹31 |
Andrew Yule has smallest revenue + worst margins + highest P/BV among peers. Impressive… for the wrong reasons.
🧾 11. Miscellaneous – Shareholding, Promoters
| Shareholder | % |
|---|---|
| Promoter (GoI) | 89.25% |
| DIIs | 2.20% |
| Public | 8.55% |
- No FII interest
- OFS or disinvestment likely (CPSE trigger theme)
- Retail is not the target audience here… yet it’s holding the bag
📢 12. EduInvesting Verdict™
Andrew Yule is a perfect PSU meme stock:
- Old, bloated, inefficient, yet somehow still alive
- Management churn every few quarters
- Trades at 4.5x Book despite zero dividend and negative profits
❌ EduInvesting Score: 4/100
Andrew Yule is the PSU version of a vintage Ambassador car — built to survive but not to perform.
- You’re a Tea & Transformer fetishist
- Believe in PSU lottery tickets
- Want to gift your portfolio a CPSE ghost for Halloween
Otherwise, enjoy it for what it is — an engineering-tea hybrid stuck in 1947.
✍️ Written by Prashant | 📅 July 4, 2025
Tags:
Andrew Yule, CPSE stocks, loss making PSU, tea company stock, transformer manufacturer India, government-owned company, PSU turnaround, negative ROE stock, undervalued or value trap, Indian engineering stocks, tea stocks India, NSE BSE CPSE stocks, EduInvesting special
