Jay Shree Tea & Industries Ltd. (JSTIL), a prominent entity within the B.K. Birla Group, stands as a leading manufacturer, exporter, and planter of bulk tea. The company operates over 17 tea estates spread across all major tea-growing regions in India and East Africa, producing both CTC and orthodox varieties. Originally incorporated as Jay Shree Tea Gardens in October 1945 with two tea estates, it was renamed Jay Shree Tea and Industries (JSTI) in 1960. Over the decades, JSTIL has evolved from its foundational tea operations into a diversified enterprise with significant interests across multiple sectors.
The company holds a substantial presence in India's tea industry, with its operations encompassing plantation, manufacturing, and distribution. Jay Shree Tea & Industries Ltd. is a key Indian producer and exporter of tea. Its diversified business portfolio includes the manufacture of sugar, ethanol, and fertilizers, alongside its core tea business. Additional operations include tea warehousing and investment activities. This strategic diversification strategy enables the company to generate multiple revenue streams while maintaining its primary focus on tea production.
JSTIL offers a wide array of teas, including black tea, green tea, white tea, oolong tea, masala chai, specialty tea, flavored tea, and organic tea. The company's tea operations extend to premium segments, featuring Darjeeling Tea Packets in various food-grade packaging. Its Assam Black Tea Packets include CTC grades and Masala Chai, alongside Earl Grey, all available in traditional loose leaf, pyramid tea bags, and everyday envelope tea bags.
This extensive product range highlights the company's dedication to meeting diverse consumer preferences. It provides tea bags in sealed pyramid forms and standard double-chambered designs for everyday use. The tea bag selection encompasses Earl Grey, Single Estate Darjeeling, Classic Assam, and a variety of Green teas. This comprehensive portfolio positions JSTIL strongly in both domestic and international markets.
Beyond its core tea business, JSTIL has strategically expanded into several other sectors. The company is involved in the manufacturing of sugar, ethanol, and fertilizers. Furthermore, it engages in tea warehousing and investment activities. Over the years, JSTIL has diversified its operations to include plywood manufacturing in the Andaman Islands and the production of superphosphates and sulphuric acid in West Bengal. It also holds interests in shipping, real estate development, and the manufacturing of tubes and tyres.
Jay Shree Tea & Industries Ltd. has a market capitalization of approximately ₹328 Crore. The company's stock is traded on both the NSE and BSE exchanges and falls within the plantation and plantation products sector, specifically the Consumer Staples sector under the Tea & Coffee sub-sector.
The company's recent financial performance has shown mixed trends. For the quarter ended December (Q3FY25), Jay Shree Tea & Industries Ltd. reported a 13.7% quarter-on-quarter (QoQ) decrease in its consolidated revenues. However, on a year-on-year (YoY) basis, revenues experienced a growth of 10.5%. Profitability demonstrated significant improvement, with net profit increasing by 141.7% QoQ and a remarkable 38631.6% YoY.
- FY25 Dividend: Recommendation of a dividend at the rate of 10% (₹0.50 per equity share of ₹5 each) for the financial year ended March 31, 2025, subject to shareholder approval at the Annual General Meeting.
- 52-Week Range: The 52-week high share price for Jay Shree Tea & Industries Ltd. is ₹166.00, and the 52-week low is ₹83.50.
- EPS (Q3FY25): The earnings per share (EPS) for Jay Shree Tea & Industries Ltd. stood at 25.5 during Q3FY25.
The company has shown a modest sales growth of 3.65% over the past five years. Additionally, JSTIL has recorded a low return on equity (ROE) of -7.42% over the last three years. These metrics suggest historical challenges in consistently generating shareholder returns.
Over the last 5 years, the company's revenue has grown at an annual rate of 1.7%, which is significantly lower than the industry average of 9.42%. This underperformance relative to industry benchmarks indicates a need for strategic initiatives to boost growth momentum. The company's diversification strategy across multiple sectors may offer opportunities for improved performance.
JSTIL has undergone several structural changes in recent years. During the fiscal year 2021-22, Majhaulia Sugar Industries Private Limited (MSIPL), a wholly-owned subsidiary, was amalgamated with the Company, effective from April 1, 2020. In 2023, North Tukvar Tea Co. Ltd. ceased to be a subsidiary following the sale of its shares.
On May 19th, the company approved its audited FY25 results, recommended a 10% dividend, appointed a new executive director, and outlined plans for asset monetization. This indicates a strategic focus on optimizing its asset portfolio and enhancing operational efficiency.
The company has a low interest coverage ratio. However, it maintains a reasonable debt-to-equity ratio of 11%, signaling a generally healthy balance sheet. Working capital days have increased from 41.1 days to 78.7 days, which may indicate some operational efficiency challenges.
Jay Shree Tea & Industries Ltd. represents a legacy company within India's tea sector, characterized by significant operational scale and strategic diversification. While facing certain growth challenges, the company's ongoing strategic initiatives, dividend policy, and asset optimization plans position it for potential recovery and future growth in the evolving market landscape.
