Rydak Syndicate Unlisted Shares
About Rydak Syndicate Unlisted Shares
Established in 1898, Rydak Syndicate Limited stands as a symbol of India’s rich tea heritage. Once known as Rydak Tea Syndicate Limited, it was renamed in 1979 and is headquartered at 4, Dr. Rajendra Prasad Sarani, Kolkata. The company owns six tea estates spread across Assam and the Dooars region of West Bengal, and is a proud member of esteemed institutions like the Indian Tea Association, Tea Research Association, and the Tea Board of India.
Rydak’s legacy includes iconic estates like Rydak, Kartick, Baradighi, Duklingia, and Kopati, producing award-winning teas that consistently top auctions and win over connoisseurs with their aroma, strength, and heritage appeal.
Business Division
Rydak Syndicate’s operations are primarily divided into the cultivation, processing, and sale of premium tea through its six major estates:
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Rydak & Kartick Estates (West Bengal): Producing premium auction-grade teas.
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Baradighi Estate: 600-acre lush property producing strong pan-India blends.
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Duklingia Estate (Assam): Known for high-quality, premium-priced teas.
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Kopati Estate (Assam): Applauded for cultural tea-making practices and regional popularity.
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Mangaldai & Central Cachar (Assam): Historic mergers contributing to a diversified portfolio.
Financial Highlights
1. Stable Revenue Growth
Revenue remained steady over the years, moving from ₹128.3 Cr in 2021 to ₹140 Cr in 2024, showing consistent topline performance despite market fluctuations.
2. Strong Gross Margins
Gross margins stayed robust, averaging over ₹92 Cr annually, with the highest at ₹97.81 Cr in 2023 — a sign of efficient production and quality product demand.
3. Declining EBITDA & Profitability
EBITDA dropped sharply from ₹25.11 Cr in 2022 to ₹9 Cr in 2024, indicating rising operational costs and pressure on overall profitability.
4. EPS Shrinkage
Earnings Per Share declined from ₹237.01 in 2022 to ₹51.55 in 2024, impacting investor returns and reflecting weaker net earnings.
5. Operating Margin Drop
Operating Profit Margin decreased from 17.58% in 2021 to 6.43% in 2024, suggesting narrowing operational efficiency and higher cost absorption.
6. Reserves & Net Worth Growth
Company reserves rose from ₹33.02 Cr in 2021 to ₹70 Cr in 2024, strengthening internal financial stability despite lower short-term profits.
7. Reduced Borrowings
Total borrowings fell from ₹17.72 Cr in 2021 to ₹8 Cr in 2024, showcasing improved debt management and reduced financial risk.
Pros
- Heritage Brand: Legacy of over 125 years with a strong brand name in premium tea.
- High-Quality Estates: Strategic locations with premium output and historical value.
- Steady Asset Growth: Strong balance sheet and consistent infrastructure investment.
Cons
- Declining Profitability: PAT and margins have reduced significantly post-2022.
- Inventory & Receivable Volatility: Sharp fluctuations reflect operational inefficiencies.
- Low Liquidity: As an unlisted entity, exit options are limited for shareholders.
