Elegant Marbles and Grani Industries Limited

Industrials — Building Products & Equipment · BSE

₹169.30−₹0.95 (−0.56%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

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, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Elegant Marbles and Grani Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Elegant Marbles and Grani Industries Limited manufactures and trades in marbles, and other stones tiles and slabs in India. The company offers gemstones, travertine, and quartz stone slabs, as well as onyx and crystal onyx.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees62

Annual revenue₹34 Cr

How does it make money?

Turns over ₹34 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 62 employees supports ₹54.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹54.5 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 3.8% 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.

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 -4% while net margin moved +14% 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-4%

Margin effect+14%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.2% a year
✗ Profit CAGR of only 3.3%
✗ Profit fell 20.6% in the latest year

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

73/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

15.8x

3Y Median

21.0x

40 monthly readings · mean 21.2x · range 9.3x–41.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 25% below its 3y median of 21.0x. 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 82% below the peer median of 88.8x.

vs. its own history

Cheap

21.0x median over 40 months · -25%

vs. sector peers

Cheap

88.8x median of 3 peers · -82%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.0x

PEG

4.75

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 87% against revenue up -4% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 25% 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 82% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

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
2 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 16%✓ 18.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 3.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 21.0x✓ 15.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

2 good · 5 neutral · 4 weak

Market Cap

₹50 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.74

Profitable

Profitable on a per-share basis

ROE

2.7%

Weak

Weak capital efficiency

ROCE

3.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

0.3%

Modest

Modest growth

Profit Growth (YoY)

-20.6%

Falling

Profits are shrinking

Dividend Yield

0.59%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

10.7x

Improving

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

Operating Margin

7.3%

Average

Average margins

Net Margin

9.0%

Average

Average bottom-line conversion

Current Ratio

8.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

32%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

173.0 / 175.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹35 Cr	₹33 Cr	₹27 Cr	₹34 Cr	-1.2%
EBITDA	₹6 Cr	₹7 Cr	₹6 Cr	₹6 Cr	+0.7%
EBITDA Margin	17.4%	20.8%	21.6%	18.4%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹5 Cr	₹3 Cr	+3.3%
EPS	₹8.3	₹11.42	₹15.87	₹11.31	+10.9%
ROE	2.9%	3.1%	3.2%	2.7%	—
ROCE	4.0%	4.2%	4.0%	3.8%	—
Free Cash Flow	₹2 Cr	-₹9 Cr	-₹10 Cr	-₹1 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.2% a year).

🟡 EBITDA has been broadly flat over 3 years (0.7% a year).

🟡 EBITDA Margin has held roughly flat at 18.4% over 3 years.

🟢 PAT (Net Profit) has grown at 3.3% a year over 3 years.

🟢 EPS has grown at 10.9% a year over 3 years.

🟡 ROE has held roughly flat at 2.7% over 3 years.

🟡 ROCE has held roughly flat at 3.8% over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹131 Cr

Total Liabilities

₹6 Cr

Total Debt

—

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.9%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

09 Jul 2025

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

6 general

Elegant Marbles & Grani Industries (ELEMARB): Value Puzzle Explained

Kalkine India, 14 Sept

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TradingView, 21 Nov

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Simply Wall Street, 14 Oct

Elegant Marbles and Grani Industries Limited (ELEMARB.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 10 Jun

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Alice Blue, 20 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑