Low PE Debt Free Stock Sets Record Date For Share Buyback Worth Rs 17.50 Cr: Do You Own?

James Warren Tea Ltd is a small cap FMCG company that recorded a market cap of Rs 106.83 Cr during Thursday's closing session. The company James Warren Tea Ltd. manufactures and markets tea. The firm announced a share buyback offer on May 29, 2023, of 7 lakh equity shares at a price of Rs. 250 per equity share, or Rs. 17.50 Cr. The Board of Directors of James Warren Tea has declared a record date for the same.

"Pursuant to Regulation 42 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations and Regulation 9(i) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations,20lS, as amended, we would like to inform you that the "Buyback Committee", constituted by the Board of Directors of the Company has fixed Tuesday, July 18,2023 as the Record Date for determining the entitlement of equity shareholders and the names of the shareholders of the company, who are eligible to participate in the Buyback," said James Warren Tea said in a stock exchange filing on 6.07.2023.

"Pursuant to Section 68, 69, 70 and 110 of the Companies Act, 2013 and the rules framed thereunder, the Board has considered and approved the proposal of Buyback of 7,00,000 (Seven Lakhs Only) Equity shares of Rs. 10/- each fully paid-up (representing 15.91% of the total paid up equity share capital of the Company as on 31st March, 2023) at a price of Rs.250/- (Rupees Two Hundred and fifty Only) per equity share aggregating to Rs 17,50,00,000 (Rupees Seventeen Crores and Fifty Lakhs Only) payable in cash," informed James Warren Tea to stock exchanges on the Board Meeting held on 29th May.2023.

The company reported a standalone net income of Rs 13.11 Cr during the March 2023 quarter compared to Rs 10.60 Cr reported during March 2022 quarter. Its net expenses stood at Rs 27.48 Cr as against Rs 16.63 Cr in the same quarter of FY22. The company's EBIT widens to Rs (-14.37) Cr compared to Rs (-6.03) Cr in the corresponding quarter of FY22. James Warren Tea reported a net loss of Rs (-13.02) Cr during Q4FY23 compared to a loss of Rs (-6.05) Cr in Q4FY22.

On Thursday, the shares of James Warren Tea Ltd closed on the BSE at Rs 242.80 apiece up by 0.77% from the previous close of Rs 240.95. The stock made a 52-week-high of Rs 320.00 on (16/11/2022) and a 52-week-low of Rs 190.00 on (27/07/2022). During Q4FY23, the company reported promoter shareholding of 70.42%, DIIs stake of 0.01% and public stake of 29.59%. As per the data available on Trendlyne and Screener, James Warren Tea is a debt-free company which has a PE ratio of 11.3, lower than its sector PE ratio of 41.6.