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Tata Coffee

NSEI:TATACOFFEE
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TATACOFFEE
NSEI
₹10B
Market Cap
  1. Home
  2. IN
  3. Food, Beverage & Tobacco
Company description

Tata Coffee Limited, together with its subsidiaries, produces, trades in, and distributes coffee, tea, and allied products. The last earnings update was 68 days ago. More info.


Add to Portfolio Compare Print
  • Tata Coffee has significant price volatility in the past 3 months.
TATACOFFEE Share Price and Events
7 Day Returns
-0.5%
NSEI:TATACOFFEE
0.8%
IN Food
-3.6%
IN Market
1 Year Returns
-40.9%
NSEI:TATACOFFEE
-1.9%
IN Food
-32.1%
IN Market
TATACOFFEE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tata Coffee (TATACOFFEE) -0.5% -29% -39.9% -40.9% -57% -43.3%
IN Food 0.8% -15.2% -11.2% -1.9% 40.5% 73.7%
IN Market -3.6% -26.9% -31.5% -32.1% -24.1% -15.2%
1 Year Return vs Industry and Market
  • TATACOFFEE underperformed the Food industry which returned -1.9% over the past year.
  • TATACOFFEE underperformed the Market in India which returned -32.1% over the past year.
Price Volatility
TATACOFFEE
Industry
5yr Volatility vs Market

Value

 Is Tata Coffee undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tata Coffee to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tata Coffee.

NSEI:TATACOFFEE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:TATACOFFEE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Food Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.569 (1 + (1- 35%) (127.57%))
1.027
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (1.027 * 7.85%)
14.54%

Discounted Cash Flow Calculation for NSEI:TATACOFFEE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tata Coffee is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:TATACOFFEE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.54%)
2020 345.64 Est @ 10.52% 301.77
2021 377.81 Est @ 9.31% 287.98
2022 409.77 Est @ 8.46% 272.69
2023 442.00 Est @ 7.87% 256.80
2024 474.93 Est @ 7.45% 240.90
2025 508.92 Est @ 7.16% 225.37
2026 544.32 Est @ 6.96% 210.45
2027 581.40 Est @ 6.81% 196.25
2028 620.43 Est @ 6.71% 182.84
2029 661.65 Est @ 6.64% 170.23
Present value of next 10 years cash flows ₹2,345.00
NSEI:TATACOFFEE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹661.65 × (1 + 6.48%) ÷ (14.54% – 6.48%)
₹8,740.54
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹8,740.54 ÷ (1 + 14.54%)10
₹2,248.81
NSEI:TATACOFFEE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹2,345.00 + ₹2,248.81
₹4,593.81
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹4,593.81 / 186.77
₹24.6
NSEI:TATACOFFEE Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:TATACOFFEE represents 0.99908x of BSE:532301
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99908x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 24.60 x 0.99908
₹24.57
Value per share (INR) From above. ₹24.57
Current discount Discount to share price of ₹54.30
= -1 x (₹54.30 - ₹24.57) / ₹24.57
-121%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Tata Coffee is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tata Coffee's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tata Coffee's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:TATACOFFEE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹4.44
BSE:532301 Share Price ** BSE (2020-04-03) in INR ₹54.35
India Food Industry PE Ratio Median Figure of 149 Publicly-Listed Food Companies 10.64x
India Market PE Ratio Median Figure of 2,614 Publicly-Listed Companies 9.41x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tata Coffee.

NSEI:TATACOFFEE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532301 Share Price ÷ EPS (both in INR)

= 54.35 ÷ 4.44

12.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Coffee is overvalued based on earnings compared to the IN Food industry average.
  • Tata Coffee is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Tata Coffee's expected growth come at a high price?
Raw Data
NSEI:TATACOFFEE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
21.1%per year
India Food Industry PEG Ratio Median Figure of 18 Publicly-Listed Food Companies 0.64x
India Market PEG Ratio Median Figure of 400 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

NSEI:TATACOFFEE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.23x ÷ 21.1%

0.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Coffee is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Tata Coffee's assets?
Raw Data
NSEI:TATACOFFEE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹64.09
BSE:532301 Share Price * BSE (2020-04-03) in INR ₹54.35
India Food Industry PB Ratio Median Figure of 197 Publicly-Listed Food Companies 0.75x
India Market PB Ratio Median Figure of 3,613 Publicly-Listed Companies 0.63x
NSEI:TATACOFFEE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532301 Share Price ÷ Book Value per Share (both in INR)

= 54.35 ÷ 64.09

0.85x

* Primary Listing of Tata Coffee.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tata Coffee is overvalued based on assets compared to the IN Food industry average.
X
Value checks
We assess Tata Coffee's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Tata Coffee has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Tata Coffee expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tata Coffee expected to grow at an attractive rate?
  • Tata Coffee's earnings growth is expected to exceed the low risk savings rate of 6.5%.
Growth vs Market Checks
  • Tata Coffee's earnings growth is expected to exceed the India market average.
  • Tata Coffee's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:TATACOFFEE Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:TATACOFFEE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 21.1%
NSEI:TATACOFFEE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 10.7%
India Food Industry Earnings Growth Rate Market Cap Weighted Average 20.5%
India Food Industry Revenue Growth Rate Market Cap Weighted Average 12.2%
India Market Earnings Growth Rate Market Cap Weighted Average 19.2%
India Market Revenue Growth Rate Market Cap Weighted Average 8.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:TATACOFFEE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:TATACOFFEE Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 21,798 1,100 1
2020-03-31 19,643 934 1
NSEI:TATACOFFEE Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 19,098 830
2019-09-30 18,738 2,324 694
2019-06-30 18,485 693
2019-03-31 18,040 1,449 688
2018-12-31 17,839 647
2018-09-30 16,956 964
2018-06-30 16,219 938
2018-03-31 15,673 1,243 1,066
2017-12-31 15,288 1,459
2017-09-30 15,619 1,327
2017-06-30 15,472 1,400
2017-03-31 16,060 3,273 1,512

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tata Coffee's earnings are expected to grow significantly at over 20% yearly.
  • Tata Coffee's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:TATACOFFEE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Tata Coffee Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TATACOFFEE Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 5.89 5.89 5.89 1.00
2020-03-31 5.00 5.00 5.00 1.00
NSEI:TATACOFFEE Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 4.44
2019-09-30 3.71
2019-06-30 3.71
2019-03-31 3.68
2018-12-31 3.46
2018-09-30 5.16
2018-06-30 5.02
2018-03-31 5.71
2017-12-31 7.80
2017-09-30 7.10
2017-06-30 7.50
2017-03-31 8.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Tata Coffee will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Tata Coffee's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tata Coffee has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Tata Coffee performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tata Coffee's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tata Coffee's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Tata Coffee's 1-year earnings growth exceeds its 5-year average (28.3% vs -9%)
  • Tata Coffee's earnings growth has exceeded the IN Food industry average in the past year (28.3% vs 20.6%).
Earnings and Revenue History
Tata Coffee's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tata Coffee Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TATACOFFEE Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 19,098.42 830.35 3,312.06
2019-09-30 18,737.92 693.65 3,297.56
2019-06-30 18,484.92 692.85 3,233.56
2019-03-31 18,039.82 687.75 3,237.86
2018-12-31 17,838.94 647.44 3,224.54
2018-09-30 16,956.14 963.94 3,158.34
2018-06-30 16,218.74 937.94 3,206.04
2018-03-31 15,673.24 1,066.34 3,154.84
2017-12-31 15,288.44 1,458.61 3,140.40
2017-09-30 15,618.94 1,326.91 3,156.10
2017-06-30 15,471.54 1,400.41 3,165.20
2017-03-31 16,060.02 1,511.51 3,161.60
2016-12-31 18,188.55 1,544.33 3,215.29
2016-09-30 18,081.15 1,534.23 3,242.59
2016-06-30 18,388.05 1,421.83 3,171.69
2016-03-31 15,503.74 825.05 2,987.99
2015-12-31 17,578.87 1,227.86 6,015.34
2015-09-30 17,471.57 1,106.36 5,943.54
2015-06-30 17,140.67 1,154.76 5,952.94
2015-03-31 16,929.45 1,203.86 2,742.77
2014-12-31 16,064.60 972.87 5,874.81
2014-09-30 15,780.00 1,166.47 5,901.51
2014-06-30 16,280.40 714.07 6,046.81
2014-03-31 16,771.70 814.77 6,133.31
2013-12-31 16,474.54 903.76 6,300.70
2013-09-30 16,820.44 787.06 5,994.30
2013-06-30 16,962.34 1,284.26 5,578.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tata Coffee has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tata Coffee used its assets less efficiently than the IN Food industry average last year based on Return on Assets.
  • Tata Coffee's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tata Coffee's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tata Coffee has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Tata Coffee's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tata Coffee's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tata Coffee is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tata Coffee's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Tata Coffee's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tata Coffee Company Filings, last reported 3 months ago.

NSEI:TATACOFFEE Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 15,748.90 12,949.20 2,158.70
2019-09-30 15,748.90 11,987.50 2,158.70
2019-06-30 15,427.00 11,548.16 1,822.81
2019-03-31 15,427.00 11,548.16 1,822.81
2018-12-31 15,592.70 12,001.80 2,138.40
2018-09-30 15,592.70 12,001.80 2,138.40
2018-06-30 14,694.01 9,898.10 1,352.48
2018-03-31 14,694.01 9,898.10 1,330.71
2017-12-31 13,800.00 8,559.00 1,384.40
2017-09-30 13,800.00 8,559.00 1,384.40
2017-06-30 13,565.99 7,800.95 1,718.85
2017-03-31 13,565.99 7,800.95 1,718.85
2016-12-31 13,117.30 7,678.70 967.70
2016-09-30 13,117.30 7,678.70 967.70
2016-06-30 11,969.68 8,974.13 542.28
2016-03-31 12,232.81 8,962.34 857.01
2015-12-31 11,453.40 8,773.30 268.00
2015-09-30 11,453.40 8,773.30 268.00
2015-06-30 10,537.92 9,018.37 433.72
2015-03-31 10,537.92 9,018.37 433.72
2014-12-31 10,255.30 9,249.70 1,040.40
2014-09-30 10,255.30 9,249.70 1,040.40
2014-06-30 9,202.22 9,728.67 864.70
2014-03-31 9,202.22 9,728.67 864.70
2013-12-31 8,916.60 10,213.60 201.80
2013-09-30 8,916.60 10,213.60 201.80
2013-06-30 8,609.36 9,152.56 557.34
  • Tata Coffee's level of debt (76.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (90.1% vs 76.1% today).
  • Debt is not well covered by operating cash flow (19.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).
X
Financial health checks
We assess Tata Coffee's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tata Coffee has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Tata Coffee's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.76%
Current annual income from Tata Coffee dividends.
If you bought ₹2,000 of Tata Coffee shares you are expected to receive ₹55 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tata Coffee's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.96%).
  • Tata Coffee's dividend is below the markets top 25% of dividend payers in India (4.06%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:TATACOFFEE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
India Food Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 1%
India Market Average Dividend Yield Market Cap Weighted Average of 1418 Stocks 2%
India Minimum Threshold Dividend Yield 10th Percentile 0.4%
India Bottom 25% Dividend Yield 25th Percentile 1%
India Top 25% Dividend Yield 75th Percentile 4.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:TATACOFFEE Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31
2020-03-31
NSEI:TATACOFFEE Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-07 1.500 1.855
2019-04-22 1.500 1.681
2018-06-04 1.500 1.504
2018-05-07 1.500 1.282
2017-06-19 1.500 1.055
2017-06-08 1.500 1.146
2017-05-18 1.500 1.168
2016-06-30 1.300 1.064
2016-05-16 1.300 1.389
2015-07-06 1.300 1.429
2015-05-15 1.300 1.472
2014-06-20 1.300 1.385
2014-05-14 1.300 1.366
2013-06-06 1.500 1.505
2013-05-13 1.500 0.987
2013-01-25 1.000 0.657
2012-09-12 1.000 0.817
2012-08-08 1.100 1.128
2011-08-22 1.000 1.177
2011-01-25 1.000 1.275
2010-12-28 1.000 1.848
2010-08-23 0.750 1.338
2009-06-01 0.600 1.828

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Tata Coffee's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Tata Coffee's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tata Coffee afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tata Coffee has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Tata Coffee's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chacko Thomas
COMPENSATION ₹20,882,000
AGE 49
TENURE AS CEO 1 years
CEO Bio

Mr. Chacko Purackal Thomas has been Chief Executive Officer and Managing Director at Tata Coffee Ltd. since April 1, 2019 and serves as its Executive Director since August 4, 2015 and served as its Deputy Chief Executive Officer since August 4, 2015 until December 24, 2018. Mr. Thomas has an experience in the industry and has served as the Managing Director of Kannan Devan Hills Plantation Company Private Limited, Munnar. Mr. Thomas is a Bachelor of Science with specialization in Computer Science from University of Jodhpur. Mr. Thomas serves as Managing Director & CEO Tata Coffee Limited at Tata Global Beverages Ltd since April 2019.

CEO Compensation
  • Chacko's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chacko's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Tata Coffee management team in years:

3.3
Average Tenure
  • The tenure for the Tata Coffee management team is about average.
Management Team

Chacko Thomas

TITLE
CEO, MD & Executive Director
COMPENSATION
₹21M
AGE
49
TENURE
1 yrs

Venkat Venkataramanan

TITLE
CFO, Executive Director of Finance & Director
COMPENSATION
₹19M
AGE
58
TENURE
5.5 yrs

N. Murthy

TITLE
Head of Legal
COMPENSATION
₹5M
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Tata Coffee board of directors in years:

4.9
Average Tenure
59.5
Average Age
  • The tenure for the Tata Coffee board of directors is about average.
Board of Directors

Harish Bhat

TITLE
Chairman of the Board
COMPENSATION
₹210K
AGE
57
TENURE
6.8 yrs

Chacko Thomas

TITLE
CEO, MD & Executive Director
COMPENSATION
₹21M
AGE
49
TENURE
4.7 yrs

Venkat Venkataramanan

TITLE
CFO, Executive Director of Finance & Director
COMPENSATION
₹19M
AGE
58

Vittaldas Leeladhar

TITLE
Independent Director
COMPENSATION
₹2M
AGE
73
TENURE
5.3 yrs

Siraj Chaudhry

TITLE
Independent Director
COMPENSATION
₹1M
AGE
52
TENURE
4.9 yrs

Chengappa Ganapati

TITLE
Independent Director
COMPENSATION
₹1M
AGE
67
TENURE
2.9 yrs

Sunalini Menon

TITLE
Independent Director
COMPENSATION
₹2M
AGE
71
TENURE
5.6 yrs

L. Kumar

TITLE
Non-Executive Non-Independent Director
COMPENSATION
₹110K
AGE
61
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Tata Coffee's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tata Coffee has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Tata Coffee Limited (NSE:TATACOFFEE) Is Yielding 2.0% - But Is It A Buy?

Is Tata Coffee Limited (NSE:TATACOFFEE) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A slim 2.0% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, Tata Coffee could have potential. Some simple analysis can reduce the risk of holding Tata Coffee for its dividend, and we'll focus on the most important aspects below. Explore this interactive chart for our latest analysis on Tata Coffee! NSEI:TATACOFFEE Historical Dividend Yield, September 1st 2019Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 40% of Tata Coffee's profits were paid out as dividends in the last 12 months. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Last year, Tata Coffee paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. Is Tata Coffee's Balance Sheet Risky? As Tata Coffee has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments. Essentially we check that a) the company does not have too much debt, and b) that it can afford to pay the interest. … Tata Coffee has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. In the last five years, Tata Coffee's earnings per share have shrunk at approximately 3.2% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Is Tata Coffee Limited (NSE:TATACOFFEE) Struggling With Its 7.3% Return On Capital Employed?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Tata Coffee: 0.073 = ₹2.0b ÷ (₹32b - ₹4.8b) (Based on the trailing twelve months to June 2019.) So, Tata Coffee has an ROCE of 7.3%. … How Tata Coffee's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … What We Can Learn From Tata Coffee's ROCE Tata Coffee has a poor ROCE, and there may be better investment prospects out there.

Simply Wall St -

Investors Who Bought Tata Coffee (NSE:TATACOFFEE) Shares A Year Ago Are Now Down 34%

That downside risk was realized by Tata Coffee Limited (NSE:TATACOFFEE) shareholders over the last year, as the share price declined 34%. … Its history of dividend payouts mean that Tata Coffee's TSR, which was a 33% drop over the last year, was not as bad as the share price return. … Before deciding if you like the current share price, check how Tata Coffee scores on these 3 valuation metrics.

Simply Wall St -

Tata Coffee (NSE:TATACOFFEE) Takes On Some Risk With Its Use Of Debt

NSEI:TATACOFFEE Historical Debt, July 18th 2019 How Healthy Is Tata Coffee's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching Tata Coffee's balance sheet over time. … Our View On the face of it, Tata Coffee's net debt to EBITDA left us tentative about the stock, and its conversion of EBIT to free cash flow was no more enticing than the one empty restaurant on the busiest night of the year.

Simply Wall St -

Is Tata Coffee Limited's (NSE:TATACOFFEE) 6.9% ROE Strong Compared To Its Industry?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Tata Coffee: 6.9% = ₹688m ÷ ₹15b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Tata Coffee Have A Good Return On Equity? … Tata Coffee's Debt And Its 6.9% ROE While Tata Coffee does have some debt, with debt to equity of just 0.75, we wouldn't say debt is excessive.

Simply Wall St -

Tata Coffee Limited (NSE:TATACOFFEE) Is Yielding 1.8% - But Is It A Buy?

Could Tata Coffee Limited (NSE:TATACOFFEE) be an attractive dividend share to own for the long haul? … Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. Tata Coffee paid out 41% of its profit as dividends, over the trailing twelve month period. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Unfortunately, while Tata Coffee pays a dividend, it also reported negative free cash flow last year. While there may be a good reason for this, it's not ideal from a dividend perspective. Is Tata Coffee's Balance Sheet Risky? As Tata Coffee has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. Over the past five years, it looks as though Tata Coffee's EPS have declined at around 3.3% a year. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Could Tata Coffee Limited's (NSE:TATACOFFEE) Investor Composition Influence The Stock Price?

The big shareholder groups in Tata Coffee Limited (NSE:TATACOFFEE) have power over the company. … Tata Coffee is a smaller company with a market capitalization of ₹17b, so it may still be flying under the radar of many institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

How Do Tata Coffee Limited’s (NSE:TATACOFFEE) Returns Compare To Its Industry?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

If You Had Bought Tata Coffee (NSE:TATACOFFEE) Stock A Year Ago, You'd Be Sitting On A 26% Loss, Today

That downside risk was realized by Tata Coffee Limited (NSE:TATACOFFEE) shareholders over the last year, as the share price declined 26%. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … This fall in the EPS is significantly worse than the 26% the share price fall.

Simply Wall St -

Should You Be Tempted To Sell Tata Coffee Limited (NSE:TATACOFFEE) Because Of Its P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Tata Coffee has a price to earnings ratio of 24.31, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Tata Coffee Limited, together with its subsidiaries, produces, trades in, and distributes coffee, tea, and allied products. The company offers green coffee beans; instant coffee products, such as spray dried, agglomerated, and freeze dried coffee products, as well as coffee mixes; roast and ground products; and pepper and cardamom products. It owns 19 coffee estates covering approximately 8,000 hectares; and 7 tea estates covering 2,400 hectares. The company primarily operates in India, the United States, CIS countries, Europe, Africa, and Vietnam. Tata Coffee Limited was incorporated in 1943 and is based in Bengaluru, India. Tata Coffee Limited is a subsidiary of Tata Global Beverages Limited.

Details
Name: Tata Coffee Limited
TATACOFFEE
Exchange: NSEI
Founded: 1943
₹10,150,969,609
186,770,370
Website: http://www.tatacoffee.com
Address: Tata Coffee Limited
No. 57, Railway Parallel Road,
Kumara Park West,
Bengaluru,
Karnataka, 560020,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532301 Equity Shares Mumbai Stock Exchange IN INR 12. Nov 2002
NSEI TATACOFFEE Equity Shares National Stock Exchange of India IN INR 12. Nov 2002
Number of employees
Current staff
Staff numbers
0
Tata Coffee employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 13:43
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/01/30
Last earnings filing: 2020/01/28
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.