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Tata Coffee (NSE:TATACOFFEE) Profitability Rank

: 8 (As of Dec. 2022)
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Tata Coffee has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Tata Coffee's Operating Margin % for the quarter that ended in Dec. 2022 was 9.50%. As of today, Tata Coffee's Piotroski F-Score is 8.


Competitive Comparison

For the Packaged Foods subindustry, Tata Coffee's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Tata Coffee Profitability Rank Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Tata Coffee's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Tata Coffee's Profitability Rank falls in comparison to its industry or sector. The grey bar indicates the Profitability Rank's extreme value range as defined by GuruFocus.



Tata Coffee Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Tata Coffee has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Tata Coffee's Operating Margin % for the quarter that ended in Dec. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2022 ) / Revenue (Q: Dec. 2022 )
=709.1 / 7466.6
=9.50 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Tata Coffee has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Tata Coffee Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.

4. Consistency of the profitability

5. Predictability Rank


Tata Coffee Profitability Rank Related Terms

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Tata Coffee (NSE:TATACOFFEE) Business Description

Tata Coffee logo
Traded in Other Exchanges
Address
No.57, Railway Parallel Road, Kumara Park West, Bengaluru, KA, IND, 560 020
Tata Coffee Ltd is an India based coffee plantation company. It is primarily engaged in the production, trading, and distribution of coffee, tea, and other allied products. The group's business segments are Plantation segment which includes cultivation, manufacture, and sale of coffee and other plantation crops; Value Added Products segment which includes production and sale of roasted and ground and instant coffee products, and the Other segment. Value Added Products segment contributes majorly to the group's revenue. The business operations of the company are carried mainly in India, USA, Commonwealth of Independent States (CIS) countries and Rest of the World. It generates a majority of the revenue from the USA. The company's products include Green bean, Pepper, Tea and Instant coffee.

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