Tyroon Tea Company Limited

Consumer Defensive — Farm Products · BSE

₹83.00+₹0.90 (+1.10%)

DalalBaazaar Score

29 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Tyroon Tea Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tyroon Tea Company Limited engages in the cultivation, manufacture, and sale of tea in India. It offers CTC and orthodox teas.

IndustryFarm Products

SectorConsumer Defensive

Employees1,349

Annual revenue₹35 Cr

How does it make money?

Turns over ₹35 Cr a year. Of every ₹100 of sales, about ₹-7 reaches shareholders as profit, with ₹-6 left at the operating level before interest, tax and depreciation. Each of its 1,349 employees supports ₹2.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-6.5%

Net margin-6.7%

Revenue / employee₹2.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Little sign of one

Returns on capital of -5.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-5.3%

ROE-6.0%

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -17% while net margin moved -181% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-17%

Margin effect-181%

DalalBaazaar Score

29/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.2% a year

Quality vs. Valuation

Company Quality

25/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.72x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 44% over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 10.3% to -6.5% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 10.2% to -6.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 10.6% to -5.3% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 9.55x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -13.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 16.8 points, from 10.3% to -6.5%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 9.4x to -13.0x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 44% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.3% to -6.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 9.55x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 10.2% to -6.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -8%✓ -6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -13.0x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -5.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 2 neutral · 6 weak

Market Cap

₹28 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.72x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-3.75

Loss-making

Negative earnings per share — the business is losing money

ROE

-6.0%

Weak

Weak capital efficiency

ROCE

-5.3%

Weak

Low return on total capital employed

Debt/Equity

9.55x

High

High leverage

Revenue Growth (YoY)

57.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1316.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹83

Operating Margin

5.0%

Average

Average margins

Net Margin

-3.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

83.1 / 85.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹42 Cr	₹42 Cr	₹41 Cr	₹35 Cr	-6.2%
EBITDA	₹4 Cr	₹3 Cr	₹4 Cr	-₹2 Cr	—
EBITDA Margin	10.3%	6.9%	9.5%	-6.5%	—
PAT (Net Profit)	₹4 Cr	₹3 Cr	₹3 Cr	-₹2 Cr	—
EPS	₹10.33	₹8.78	₹9.72	₹-6.9	—
ROE	10.2%	7.9%	8.0%	-6.0%	—
ROCE	10.6%	8.9%	8.4%	-5.3%	—
Total Debt	₹7 Cr	₹6 Cr	₹0 Cr	₹4 Cr	-17.6%
Free Cash Flow	-₹3 Cr	-₹2 Cr	₹0 Cr	-₹5 Cr	—

🔴 Revenue has shrunk at 6.2% a year over 3 years.

🔴 EBITDA has turned negative, from ₹4 Cr to -₹2 Cr.

🔴 EBITDA Margin has fallen from 10.3% to -6.5% over 3 years (-16.8 pts).

🔴 PAT (Net Profit) has turned negative, from ₹4 Cr to -₹2 Cr.

🔴 EPS has turned negative, from ₹10.33 to ₹-6.9.

🔴 ROE has fallen from 10.2% to -6.0% over 3 years (-16.2 pts).

🔴 ROCE has fallen from 10.6% to -5.3% over 3 years (-15.9 pts).

🟢 Total Debt has shrunk at 17.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹57 Cr

Total Liabilities

₹18 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.0%

Corporate Actions

Ex-Dividend Date

17 Sept 2014

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed1 negative4 general

Tyroon Tea Company Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Tyroon Tea AGM: 98.29% vote for director reappointment

scanx.trade, 25 Sept

Tea Estates Penny Stocks in India 2027: 5 Picks

Univest, 17 Sept

Tyroon Tea Standalone June 2026 Net Sales at Rs 8.98 crore, up 57.8% Y-o-Y

Moneycontrol.com, 18 Aug

Kriti Industries (India) reports consolidated net loss of Rs 2.21 crore in the June 2026 quarter

Business Standard, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Tyroon Tea reports net loss for FY26 as revenue declines

scanx.trade, 29 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate9/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.1/15

🔴RiskHigh3.7/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -8%-6.5%
✗Free cash flow remains positive-₹5 Cr
✗Interest cover stays above 3x-13.0x
✗ROCE stays above 8%-5.3%