Bottom Line: Lower to c0mplete wave 2

Kapchorua Tea Kenya Plc is one of Kenya’s longstanding tea producers and exporters. The company cultivates, processes and markets tea — largely from its estates in Nandi Hills — and sells both domestically and internationally

📈 Recent Financial Performance

  • For the fiscal year ended March 2025, Kapchorua reported revenue of approximately KES 2.22 billion, marking a modest 1.13% year-on-year growth

  • Net income for that period was KES 181.2 million — a steep decline compared to the previous year.
  • For context: in FY2024, the company had posted a profit after tax of ~KES 399 million

Despite stable revenue, Kapchorua issued a profit warning ahead of FY2025 results. The factors cited included:

  • Decline in international tea prices due to oversupply in global markets.

    • A stronger Kenyan Shilling vs foreign currencies, which reduces export revenue in KES. 

  • The result was an over 50% drop in net profit (from ~KES 399M to ~KES 181M), despite similar revenue levels.

  • Despite the tough 2025 results, Kapchorua retains several structural strengths:

    • Strong balance sheet & cash reserves, which provide financial buffer and liquidity.

 

11/26/2025 06:29EST (Last Price 219):

Trading around wave 4 extreme at 190, we are looking for any evidence for a turn higher, such as a five-wave advance for wave B of 2..