1. At a Glance – 113-Year-Old Tea, Still Brewing Confusion
The Peria Karamalai Tea & Produce Company Ltd is a 1913-born plantation veteran with tea gardens older than most Indian PSUs and financials that behave like they’ve had one cup too many.
- Market Cap: ₹213 Cr
- Current Price: ₹689
- Book Value: ₹705 (yes, trading below book — not a typo)
- Sales (TTM): ₹54.8 Cr
- PAT (TTM): ₹-0.23 Cr (negative, boss)
- ROCE: 1.20%
- ROE (3Y): ~0%
- Debt: ₹44.9 Cr
- Promoter Holding: 65.7% (slowly creeping up)
Q3 FY26 brought a temporary smile:
- Revenue: ₹17.57 Cr (+41% YoY)
- PAT: ₹0.41 Cr (+112% YoY)
But before you shout “turnaround”, remember — this company has a long history of one good quarter followed by two existential crises.
Curious already? Good. You should be.
2. Introduction – A Tea Company That Secretly Wants to Be a Mutual Fund
Peria Karamalai is not just a tea company.
It is three companies wearing one lungi:
- A plantation business
- A renewable power generator
- A financial investment vehicle pretending to be agriculture
The problem?
None of the three generate consistently high returns.
Despite owning 6,000 acres, multiple tea estates, windmills, solar plants, and a balance sheet full of investments, shareholders have received:
- Volatile profits
- Near-zero ROE
- And dividends that sometimes look like apology letters
So why does this stock trade at ₹689 with barely ₹55 Cr sales?
Because assets, nostalgia, and promoter confidence carry weight in Indian markets — sometimes more than cash flows.
But is that confidence justified? Let’s audit
this politely. (Actually, not politely.)
3. Business Model – WTF Do They Even Do?
Explaining Peria Karamalai to a lazy investor:
“They grow tea, dabble in spices, generate electricity, and invest money — but none of it aggressively.”
Core Operations:
- Tea: Orthodox, CTC, Green
- Coffee: Arabica & Robusta
- Spices: Pepper, cardamom, cinnamon, clove
- Fruits: 600 avocado trees (yes, really)
Capacity:
- 5 million kg annual tea capacity
- 2 factories + 4 tea estates
- Blending unit: 2 tonnes/hour
Sounds impressive, right?
Now the punchline:
Actual production FY22: ~2.49 million kg — barely 50% utilisation.
So the estates exist. The leaves grow.
But profitability? That’s seasonal, erratic, and weather-dependent.
Ask yourself:
👉 Is this a commodity business or a land-holding company with hobbies?
4. Financials Overview – Quarterly Mood Swings Explained
Quarterly Comparison Table (₹ Cr)
| Metric | Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 17.57 | 12.44 | 10.57 | +41.2% | +66.2% |
| EBITDA | 3.67 | -2.73 | -3.64 | NM | NM |
| PAT | 0.41 | -3.63 | -5.12 | +112% | NM |
| EPS (₹) | 1.32 | -11.73 | -16.54 | NM | NM |
What actually happened?
- Strong tea season
- Costs behaved
- Other income showed up on time
- Tax did not nuke profits (unusual
