1. At a Glance – The PSU That Refuses to Die (or Thrive)
Andrew Yule & Company Ltd is that one uncle at Indian weddings who keeps telling stories from 1979 and refuses to retire — except in this case, the uncle owns tea estates, makes transformers, sells industrial fans, and somehow still manages to lose money doing all of it.
You have a ₹848 Cr market cap company, trading at a P/E of 82.7, with negative ROE (-7.96%), negative ROCE (-6.83%), and an operating margin of -29.3%.
Read that again slowly.
Loss-making business… trading at a premium valuation… backed by the Government of India… and still somehow surviving like a cockroach after nuclear war.
This is not a turnaround story. This is a survival documentary.
The company operates across three unrelated segments — Tea (58%), Engineering (27%), Electrical (15%). So basically:
- Morning: Sell tea
- Afternoon: Make transformers
- Evening: Install industrial fans
Diversification or identity crisis? You decide.
And the best part?
Even after all this hustle, the latest quarter shows:
- Revenue: ₹75 Cr
- Net Loss: ₹8.8 Cr
So the company is basically saying:
“We worked hard… and lost money doing it.”
Now here’s the spicy twist:
Despite poor fundamentals, the stock still trades at a premium P/E higher than industry median (~35.8).
So the real question is:
Is this a hidden turnaround gem… or just a government-sponsored nostalgia project?
2. Introduction – Welcome to the PSU Time Machine
Andrew Yule is not just a company.
It’s a heritage monument listed on BSE.
Founded in 1919, nationalized in 1979 — this company has seen:
- British Raj
- License Raj
- Liberalization
- Startup boom
And still somehow hasn’t figured out how to generate consistent profits.
Classic.
The company’s DNA is pure PSU:
- Multiple businesses
- Heavy workforce
- Slow decision making
- Regulatory issues
- Occasional penalties
Speaking of which…
👉 BSE has fined the company multiple times for LODR non-compliance
👉 Directors keep changing like IPL captains
👉 Credit rating agencies are literally saying:
“Issuer not cooperating”
Imagine your teacher writing in your report card:
“Student did not cooperate during exam.”
That’s Andrew Yule’s financial reputation right now.
But wait — there’s hope.
The company reported a positive PAT in one quarter (₹20 Cr in Jun 2025) before going back to losses.
So it’s like:
- One good day
- Followed by emotional damage
Let me ask you something:
Would you trust a company that earns profit once and then forgets how it did it?
3. Business Model – WTF Do They Even Do?
Andrew Yule runs three businesses that have zero synergy except “existing under the same roof.”
1. Tea Division (58%)
- 12 tea estates
- Assam, Dooars, Darjeeling
- Orthodox & green tea
Sounds premium, right?
Except tea is a low-margin, highly competitive, labour-heavy business.
Basically: hard work, low profits, and weather risk.
2. Engineering Division (27%)
- Industrial fans
- Pollution control equipment
- Impellers
This is like the company saying:
“If tea fails, we’ll sell fans.”
3. Electrical Division (15%)
