Company Presentation
Desi Tea Time Limited is India's fastest-growing tea franchise chain operating on a low-cost, high-return model, primarily across Tier 2 and Tier 3 cities. Incorporated in 2017 and headquartered in Telangana, the company specializes in tea-based beverages and light snacks, operating through an asset-light, franchise-based expansion model. As of May 5, 2025, Desi Tea Time has over 3,500 outlets across India. Suresh Tangella is the promoter of the QSR sector company, having ISIN INEOJZW01020.
The investment rationale includes a scalable model with low setup costs (₹3-5L per outlet), an asset-light franchise strategy leading to strong cash flows with minimal capex, and strong unit economics with break-even for most outlets within 6-9 months. High brand recall, especially in semi-urban and rural India, is another advantage.
Key risks include franchise quality control, which can be diluted by rapid scaling. Desi Tea Time competes in a commoditized market against local tea stalls and emerging QSRs. The company is also exposed to raw material sensitivity regarding the price volatility of tea, milk, and packaging. Shares have unlisted liquidity and are available only via secondary platforms until the IPO.
Regarding financial performance, Desi Tea Time reported revenue of ₹28.21 Cr in FY22, ₹30.71 Cr in FY23, and an estimated ₹45.95 Cr in FY24. EBITDA was ₹2.29 Cr in FY22, ₹2.78 Cr in FY23, and an estimated ₹4.73 Cr in FY24. PAT was ₹1.20 Cr in FY22, ₹1.05 Cr in FY23, and an estimated ₹2.14 Cr in FY24. EPS was ₹0.12 in FY22, ₹0.11 in FY23, and an estimated ₹0.22 in FY24.
As of May 5, 2025, the last deal price was ₹239/share, giving an implied market cap of ₹381 Cr. The P/E Ratio (FY24) is approximately 177.27x, and the P/B Ratio is approximately 13.36x. The book value is 2.92.
Regarding IPO timeline and exit options, no news is available about an expected IPO. The company raised an undisclosed amount in pre-IPO funding in 2023. Shares are available for trading on the UnlistedZone platform. The IPO valuation target depends on growth and market conditions.
UnlistedZone views Tea Time as having created a strong brand in the value QSR segment, offering a compelling opportunity for long-term investors focusing on India's consumption and entrepreneurship trends. However, execution at scale and quality assurance are critical challenges. Promoters hold 93.21% of shares, while others hold 6.79%.
The document originates from UnlistedZone and is for informational purposes only, not investment advice.
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