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Stock market activity indicated good momentum for this company; share price zoomed 13.20 per cent
Tushar Jain
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Stock market activity indicated good momentum for this company; share price zoomed 13.20 per cent

In just two months, Rossell India's stock price nearly doubled.

Today, the share price of Rossell India Ltd  reaches a new 52-week high. The shares rose 13.20 per cent from its opening price of Rs. 275.90 to an all-time high of Rs. 318 before closing at Rs. 307.05. The company has a market cap of Rs. 1126 crore. The price of the shares nearly doubled in just two months. The stock was trading at Rs 170 two months ago. 

Rossell India Limited was formerly Rossell Tea Limited. The Company has diverse interests in Tea, Aviation and Hospitality. To better reflect the diversification of its businesses, and to create a unified brand, the company, on the 19th of April 2011, rechristened itself as Rossell India Limited. Post this rechristening, Rossell India has also restructured itself into three divisions – Tea, Aviation & Defence (Technology and Engineering) and Product Support Services (Aerospace). In the Aerospace and Defence segment, the company has JV’s, partnerships and service agreements with leading OEMs of the world. Apart from this, Rossell India also has strategic partnerships in the Hospitality sector.   

The company exports its tea to numerous nations, including the USA, UK, Germany, Japan, Iran, and the United Arab Emirates. Boeing and Lockheed Martin, the Indian Defense Forces, Defense Public Industry Undertakings, and others are some of its clients in the A&D sector. In order to gain traction with the US government and explore business potential with Israeli Defense in its A&D section, the company is seeking to negotiate agreements in the US and Israel in the near future. 

The stock now has a PE and PB ratio of 47.54x and 4.58x, respectively. The first quarter of the FY23 saw a sequential gain of 27 per cent in topline  at RS 70 crore. In Q1FY23, the company achieved net profits of Rs 5 crore. 

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Pradeep Kumar Mittal

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