Asian Granito India Limited

Industrials — Building Products & Equipment · NSE

₹53.00+₹0.22 (+0.42%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Asian Granito India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Asian Granito India Limited, together with its subsidiaries, engages in the manufacture and trade of tiles, marbles, and allied products in India and internationally.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees1,264

Annual revenue₹1,847 Cr

How does it make money?

Turns over ₹1,847 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 1,264 employees supports ₹1.46 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin6.3%

Net margin1.1%

Revenue / employee₹1.46 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 3.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE3.1%

ROE1.4%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +19% while net margin moved -124% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+19%

Margin effect-124%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.9% — barely ahead of inflation
✗ Profit fell 15.6% in the latest year

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

68/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

69.7x

1.3Y Median

122.4x

16 monthly readings · mean 116.3x · range 70.9x–157.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 43% below its 1.3y median of 122.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 22% below the peer median of 88.8x.

vs. its own history

Cheap

122.4x median over 16 months · -43%

vs. sector peers

Cheap

88.8x median of 3 peers · -22%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

69.7x

P/B

1.03x

EV/EBITDA

16.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -1.6% to 6.3% over 3 years.
Return on equity is rising
ROE has improved from -5.8% to 1.4%.
Return on capital is rising
ROCE has improved from -6.5% to 3.1%.
Valuation below its historical average
At 69.7x the stock trades 43% below its own median of 122.4x.
Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Debt is rising
Total debt is up 94% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 94% over 3 years, from ₹227 Cr to ₹439 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 134% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1.6% to 6.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 43% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 22% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 5.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 4%✓ 6.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹40 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✓ 5.9% CAGR
Latest reported year was 36.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 2 neutral · 5 weak

Market Cap

₹1,571 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

69.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.03x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.76

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

3.1%

Weak

Low return on total capital employed

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

36.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-15.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹40 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹53

P/E (Forward)

2.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.2%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

50.0 / 49.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,557 Cr	₹1,524 Cr	₹1,707 Cr	₹1,847 Cr	+5.9%
EBITDA	-₹24 Cr	₹55 Cr	₹102 Cr	₹116 Cr	—
EBITDA Margin	-1.6%	3.6%	6.0%	6.3%	—
PAT (Net Profit)	-₹73 Cr	-₹12 Cr	₹10 Cr	₹21 Cr	—
EPS	₹-6.14	₹-0.97	₹0.48	₹0.7	—
ROE	-5.8%	-1.0%	0.7%	1.4%	—
ROCE	-6.5%	0.9%	2.1%	3.1%	—
Total Debt	₹227 Cr	₹248 Cr	₹373 Cr	₹439 Cr	+24.7%
Free Cash Flow	-₹306 Cr	-₹161 Cr	-₹73 Cr	-₹40 Cr	—

🟢 Revenue has grown at 5.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹24 Cr to ₹116 Cr.

🟢 EBITDA Margin has risen from -1.6% to 6.3% over 3 years (+7.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹73 Cr to ₹21 Cr.

🟢 EPS has turned positive, from ₹-6.14 to ₹0.7.

🟢 ROE has risen from -5.8% to 1.4% over 3 years (+7.2 pts).

🟢 ROCE has risen from -6.5% to 3.1% over 3 years (+9.6 pts).

🔴 Total Debt has grown at 24.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,472 Cr

Total Liabilities

₹929 Cr

Total Debt

₹439 Cr

Cash & Equivalents

₹45 Cr

Operating Cash Flow

₹94 Cr

Capex

-₹134 Cr

Shareholding (proxy)

Institutional Holding

0.6%

Insider Holding

53.1%

Corporate Actions

Ex-Dividend Date

09 Jun 2022

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed3 general

With EPS Growth And More, Asian Granito India (NSE:ASIANTILES) Makes An Interesting Case

Simply Wall Street, 11 Apr

Asian Granito India Q1 FY27 Results: Revenue Jumps 28.5% YoY to ₹530.95 Crore

scanx.trade, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Tech Query: Bajaj Auto, MRF, LMW, Asian Granito India – What is the outlook? Where are these stocks headed?

BusinessLine, 08 Aug

Asian Granito Q4 Net Loss Widens to ₹31.9 Cr Despite Revenue Rising to ₹540 Cr

Sahi, 30 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Why Did Asian Granito Shares Fall Despite Stable Industry Demand?

Kalkine India, 30 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Asian Granito India (ASIANTILES) Rebounds 3.6% to ₹49.61: Near-Term Hurdles and Demand Signals in Focus - Dark Pool Prints

siam.in, 31 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟡Financial HealthAdequate10.1/20

🔴GrowthWeak7.6/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair9.7/15

🔴RiskHigh4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 4%6.3%
✗Debt / EBITDA falls below 3x3.8x
✗Free cash flow remains positive-₹40 Cr
✗Interest cover stays above 3x1.7x
✓Revenue growth stays above 4% a year5.9% CAGR