Value estimation of Tata Coffee Ltd

During my MBA, I was particularly influenced by two courses on Financial Management and Private Equity Finance and delved into research pertaining to investment. I discovered the worlds of Warren Buffet and Charlie Munger and then through them, Ben Graham and Phil Fisher. The world of value investing started to make better sense than earlier times when I was simply speculating on stocks.

One thing led to another and I came across a lot of resources in form of books and material in the internet. I stumbled across Mohnish Pabrai, Ramdeo Aggarwal, Sanjay Bakshi, Peter Lynch, Howard Marks and few others and their gems in the published world. So, I did some analytical work based on the learning and in particular, Ben Graham's Intelligent Investor left a huge mark. In this post, I would like to publish a spreadsheet view of my analysis of value of Tata Coffee Limited stock that is being traded in BSE.

As per my estimation, the intrinsic value of Tata Coffee Ltd is in the range of INR 63 to INR 110. The stock is currently trading at INR 95 in BSE. But high debt level, fluctuating EPS, low ROCE and high intangible asset values are deterring me to put money into this stock at present valuation.

DISCLAIMER: This post is not intended for any stock purchase or sale recommendation. It simply is an application of value investing framework that I have learnt reading few books on the topic.