Exxaro Tiles Limited

Industrials — Building Products & Equipment · NSE

₹6.13+₹0.05 (+0.82%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Exxaro Tiles Limited engages in the manufacture and trade of vitrified tiles used for flooring solutions in India and internationally. The company offers callistro marble, emarble series, surface, spanzia, prima, earthstone, and adhesive products under the Exxaro brand.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees506

Annual revenue₹302 Cr

How does it make money?

Turns over ₹302 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 506 employees supports ₹59.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹59.7 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 4.8% 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 -59% 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-59%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.4% a year
✗ Profit has declined at 27.0% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

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.

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

68.1x

3Y Median

133.6x

40 monthly readings · mean 124.3x · range 51.5x–204.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 49% below its 3y median of 133.6x. 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 23% below the peer median of 88.8x.

vs. its own history

Cheap

133.6x median over 40 months · -49%

vs. sector peers

Cheap

88.8x median of 3 peers · -23%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

15.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🟡Profit is decliningFinancial
Net profit is down 61% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 49% 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 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹24 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.8% to 7.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.

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

1EBITDA margin holds above 6%✓ 7.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹24 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 4.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

6 good · 2 neutral · 3 weak

Market Cap

₹274 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

68.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.03x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.09

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

4.8%

Weak

Low return on total capital employed

Debt/Equity

0.33x

Low

Conservative leverage

Revenue Growth (YoY)

31.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

150.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹24 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.3%

Average

Average margins

Net Margin

1.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.1 / 6.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹315 Cr	₹301 Cr	₹302 Cr	₹302 Cr	-1.4%
EBITDA	₹34 Cr	₹25 Cr	₹23 Cr	₹23 Cr	-11.9%
EBITDA Margin	10.8%	8.4%	7.7%	7.7%	—
PAT (Net Profit)	₹7 Cr	₹2 Cr	-₹0 Cr	₹3 Cr	-27.0%
EPS	₹0.16	₹0.05	—	₹0.06	-28.3%
ROE	2.7%	0.8%	-0.0%	1.0%	—
ROCE	6.0%	5.4%	4.3%	4.8%	—
Total Debt	₹94 Cr	₹97 Cr	₹92 Cr	₹93 Cr	-0.2%
Free Cash Flow	-₹41 Cr	-₹0 Cr	₹16 Cr	₹24 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.4% a year).

🔴 EBITDA has shrunk at 11.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.8% to 7.7% over 3 years (-3.1 pts).

🔴 PAT (Net Profit) has shrunk at 27.0% a year over 3 years.

🔴 EPS has shrunk at 28.3% a year over 3 years.

🔴 ROE has fallen from 2.7% to 1.0% over 3 years (-1.6 pts).

🔴 ROCE has fallen from 6.0% to 4.8% over 3 years (-1.2 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.2% a year).

🟢 Free Cash Flow has turned positive, from -₹41 Cr to ₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹488 Cr

Total Liabilities

₹208 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹33 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

1.3%

Insider Holding

73.7%

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 positive1 mixed4 general

Exxaro Tiles Share Price Target 2026: Rs 7.91 Analyst Forecast

Univest, 09 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Volume Gainers August 28: SecMark, Exxaro, Mastek Lead

HDFC Sky, 28 Aug

Exxaro Tiles consolidated net profit rises 155.56% in the June 2026 quarter

Business Standard, 27 JulResults

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

Exxaro Tiles Limited (NSE:EXXARO) Stock Rockets 28% As Investors Are Less Pessimistic Than Expected

Simply Wall Street, 14 Nov

Exxaro Tiles Limited (NSE: EXXARO) Slumps 10%: Is the Failed Breakout Signalling More Weakness Ahead?

Kalkine India, 14 Apr

Exxaro Tiles vs Nifty 50: Share Price Performance Compared

Univest, 21 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · 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. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑