Tea is undeniably the most consumed beverage by all of us, including half a billion other Indians. Tea Time is India’s leading desi Tea Franchise Chain known for its unique blends of tea and consistent quality at an affordable price, all of which are valued the most by our customers and investors. TEA TIME is one of the largest tea brands of India, having a chain of tea outlets selling different kinds of TEA, COOLERS & SHAKES at reasonable prices.They have increased their store count from just 10 stores in 2017 to 3000+ stores now is a testament to their growth and the quality of the product.
They offer popular Dum-Tea and many other authentic blends of tea, coolers and milkshakes.
Products of the Tea Time:
Founders’ Background:
Name: Uday Srinivas Tangella
Designation: CEO
Details : Uday worked for a number of software companies after earning a bachelor’s degree in electronics and communications engineering from TRR Engineering College in Hyderabad in 2006. He held his most recent post in Dubai, which he left in 2016 to do business and then open a simple tea shop.
Some FAQs to understand the business of Tea Time
1. How many Tea Time outlets are owned by the company? What is the revenue percentage of these outlets in FY22?
Ans- Total outlet ~2900+
Total revenue – through franchisee+ other is ~1990 Cr in last 5 years revenues.
2. How much money is needed by a franchise to set up an outlet?
Ans- Franchisee start fee is 5 lac. Money is required for setup its depending on location and space.
3. How much revenue does Tea Time earn from each franchise?
Ans- The total revenue from franchisee within 1 year is 455 cr.
4. What are the Sales per Store in FY22?
Ans- It depends on store location and footfall.
5. Is there any other revenue source apart from income coming via franchise?
Ans- Yes they are some sources apart from franchisee which are schools, resorts, food packaging, and Traveling.
6. Is Tea Time also supplying products to modern retail? If so, how much revenue is coming from that source, FY22?
Ans- No Tea Time is not supplying products to any modern retail.
7. What are the key moats and differentiators?
Ans- Zero artificial flavors to enhance the real taste of desi tea. And 100℅ sulfur-free sugar is used in every cup. Because the company values its customer’s health.
8. Who are the key competitors?
Ans- Chaayos and MBA Chai Wala
9. Last 5 years’ CAGR growth in Revenue & PAT?
Ans- Revenue growth rate% ~136% and PAT ~137%
10. How many shares are outstanding as of 31.03.2022 and, based on that, what is the current market capitalization on the current price offering?
Ans- We Cannot apply the outstanding share concept here as they are currently working on Authorised capital and paid-up capital of the company so here authorized cap is 100cr and the paid-up is 19cr so by raising a funding towards them they are increasing there paid up capital. So for the first batch, they are currently raising 15cr from their side for them.
Price Per Equity Share | ₹ 38 |
Lot Size | 1000 Shares |
52 Week High | ₹ 40 |
52 Week Low | ₹ 38 |
Depository | NSDL & CDSL |
PAN Number | AAGCD4138B |
ISIN Number | INE0JZW01020 |
CIN | U55101TS2017PLC185249 |
RTA | CIL Securities Limited |
Market Cap (in cr.) | ₹ 371 |
P/E Ratio | 172.73 |
P/B Ratio | 13.01 |
Debt to Equity | 0.41 |
ROE (%) | 7.5 |
Book Value | 2.92 |
Face Value | 2 |
Total Shares | 97623075 |
P&L Statement | 2022 | 2023 | 2024 |
---|---|---|---|
Revenue | 2821 | 3071 | 4595 |
Cost of Material Consumed | 2126 | 1985 | 3180 |
Gross Margins | 24.64 | 35.36 | 30.79 |
Change in Inventory | -68 | -393 | -229 |
Employee Benefit Expenses | 163 | 246 | 262 |
Other Expenses | 371 | 955 | 909 |
EBITDA | 229 | 278 | 473 |
OPM | 8.12 | 9.05 | 10.29 |
Other Income | 0 | 0 | 0 |
Finance Cost | 24 | 26 | 87 |
D&A | 37 | 65 | 108 |
EBIT | 192 | 213 | 365 |
EBIT Margins | 6.81 | 6.94 | 7.94 |
PBT | 168 | 186 | 278 |
PBT Margins | 5.96 | 6.06 | 6.05 |
Tax | 48 | 81 | 64 |
PAT | 120 | 105 | 214 |
NPM | 4.25 | 3.42 | 4.66 |
EPS | 0.12 | 0.11 | 0.22 |