1. At a Glance – The Stock That Grows Tea and Wires Fighter Jets
₹171 crore market cap.
Current price: ₹45.4.
Stock P/E: 9.61.
Price to Book: 0.77.
ROCE: 10.5%.
ROE: 10.8%.
Debt to Equity: 0.35.
3-month return: -25%.
1-year return: -31.7%.
Ladies and gentlemen, meet Rossell India Ltd — the only company where your morning chai and a US military aircraft may share the same boardroom.
Q3 FY26 numbers are out: revenue of ₹8,519 lakh (₹85.19 crore) and profit of ₹428 lakh (₹4.28 crore). Sales jumped 36% YoY, but profit fell 27%. So basically, revenue did a bhangra while margins slipped on a wet tea leaf.
The stock is trading below book value. Dividend yield is 0.87%. Promoters hold 74.8%. No pledge. But the price chart looks like it just heard bad news from Wall Street.
Is this undervalued? Or just misunderstood? Or is the demerger playing musical chairs with valuation?
Let’s open the books.
2. Introduction – From Tea Gardens to Boeing’s Supply Chain
Rossell started in 1994 as Rossell Tea Ltd. Simple. Straightforward. Assam tea, British buyers, orthodox blends.
Then in 2011, someone in the boardroom said:
“Why not aerospace?”
And thus, Rossell Techsys was born.
Today, the company has two divisions:
- Tea (41% of FY24 revenue)
- Aerospace & Defence (59% of FY24 revenue)
They produce CTC and Orthodox tea across 6 estates covering ~2,640 hectares. Production in FY24: 51.6 lakh kgs. Market share in orthodox tea: 2%–3%.
Meanwhile, the Aerospace division works with global OEMs like Boeing (38% revenue exposure in FY24), Lockheed Martin, Honeywell. They do Build-to-Spec and Build-to-Print manufacturing — wiring harnesses, electrical panels, fiber optic harnesses, etc.
Exports? 65% overall.
A&D exports? ~80% to USA, Europe, Israel.
So this is not a “local tea company.” It’s a global supply chain participant.
But here’s the twist — the company approved demerger of Rossell Techsys. Shareholders will receive 1 share of the new A&D company for every 1 share held.
So the future is:
Tea separate. Aerospace separate.
Which business are you actually valuing today?
Good question, no?
3. Business Model – WTF Do They Even Do?
Let’s simplify.
Tea Division
They grow tea. Sell bulk tea. Export 65%. Contracts with Taylors of Harrogate (UK), Ahmad Tea, German buyers, UAE buyers.
They produce:
- 46.6 lakh kg own crop
- 5 lakh kg bought leaf
This is commodity business. Prices fluctuate. Weather matters. Labour costs matter. Export demand matters.
Margins? Not exactly luxury levels.
Aerospace & Defence Division
This is the exciting one.
They manufacture:
- Electrical wiring interconnect systems
- Automatic test equipment
- Electrical panel assemblies
- Fiber optic harnesses
They have:
- 46 NADCAP-certified special processes
- DSIR-recognised R&D unit
- 2,50,000+ sq ft facility in Bangalore
Order book:
- Confirmed POs: ~₹900 crore
- Long-term strategic agreements: ₹2,800+ crore
This is high-value precision manufacturing. Sticky clients. Multi-year contracts.
So basically:
One division depends on rainfall.
The other depends on Pentagon budgets.
Which one deserves a higher valuation multiple?
Exactly.
4. Financials Overview – Q3 FY26 Deep Dive
EPS:
- Jun 2025: ₹2.12
- Sep 2025: ₹7.26
- Dec 2025: ₹1.14
Average = (2.12 + 7.26 + 1.14) / 3 = ₹3.51
Annualised EPS = ₹3.51 × 4 =
