Lexus Granito (India) Limited

Industrials — Building Products & Equipment · NSE

₹10.60+₹0.94 (+9.73%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:53 pm

Understanding the Business

Company site ↗

The 60-second version of Lexus 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?

Lexus Granito (India) Limited engages in the manufacturing, trading, and marketing of vitrified ceramic tiles and wall tiles in the domestic and international market in India and internationally. The company offers wall tiles, floor, and decorative elevation tiles.

IndustryBuilding Products & Equipment

SectorIndustrials

Annual revenue₹74 Cr

How does it make money?

Turns over ₹74 Cr a year. Of every ₹100 of sales, about ₹-7 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

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 -2.0% 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 -46% while net margin moved -181% 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-46%

Margin effect-181%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 151.3 points over the period

Quality vs. Valuation

Company Quality

24/ 100

Weak

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

Valuation

60/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

12.6x

4Y Median

6.5x

52 monthly readings · mean 6.6x · range 1.8x–16.3x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 95% above its 4y median of 6.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 86% below the peer median of 88.8x.

vs. its own history

Expensive

6.5x median over 52 months · +95%

vs. sector peers

Cheap

88.8x median of 3 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

16.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 36.0% to -115.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.4% to -2.0% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 3.05x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.3x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴The company is lossmakingFinancial
Net profit of -₹5 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 86% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.3% to 7.2%. 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 12.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 95% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 36.0% to -115.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

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

1EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 12.3x
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✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -0.3x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -2.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

₹21 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.6x

Cheap

Cheap against the generic band

P/B Ratio

1.19x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.84

Profitable

Profitable on a per-share basis

ROE

-115.3%

Weak

Weak capital efficiency

ROCE

-2.0%

Weak

Low return on total capital employed

Debt/Equity

3.05x

High

High leverage

Revenue Growth (YoY)

-80.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

69.7%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-137.8%

Weak

Thin margins leave little room for error

Net Margin

-4.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.94

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

11.1 / 12.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹137 Cr	₹100 Cr	₹115 Cr	₹74 Cr	-18.6%
EBITDA	₹15 Cr	₹5 Cr	-₹1 Cr	₹5 Cr	-30.0%
EBITDA Margin	11.3%	5.2%	-0.5%	7.2%	—
PAT (Net Profit)	₹12 Cr	-₹12 Cr	-₹17 Cr	-₹5 Cr	—
EPS	₹6.03	₹-6.16	₹-8.44	₹-2.49	—
ROE	36.0%	-58.1%	-177.9%	-115.3%	—
ROCE	25.4%	-9.0%	-19.2%	-2.0%	—
Total Debt	₹59 Cr	₹69 Cr	₹58 Cr	₹65 Cr	+3.2%
Free Cash Flow	₹10 Cr	-₹8 Cr	₹10 Cr	-₹4 Cr	—

🔴 Revenue has shrunk at 18.6% a year over 3 years.

🔴 EBITDA has shrunk at 30.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.3% to 7.2% over 3 years (-4.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹12 Cr to -₹5 Cr.

🔴 EPS has turned negative, from ₹6.03 to ₹-2.49.

🔴 ROE has fallen from 36.0% to -115.3% over 3 years (-151.3 pts).

🔴 ROCE has fallen from 25.4% to -2.0% over 3 years (-27.3 pts).

🔴 Total Debt has grown at 3.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹122 Cr

Total Liabilities

₹118 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹1 Cr

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

4 mixed2 general

Lexus Granito NSE:LEXUS Reg 74(5) Certificate Q2 FY27

Kalkine India, 12 OctResults

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

Why Is Lexus Granito India Share Price Falling Key Reasons 2026

Univest, 19 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.

Lexus Granito (India) Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

VARMORA GRANITO LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 29 Sept

Lexus Granito India Q2 FY27 Preview

Univest, 17 SeptResults

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

Lexus Granito (India) Limited (NSE: LEXUS) Share Price Falls 5% as Weak Momentum Persists

Kalkine India, 10 AprPrice 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.

Watch Items

Revenue growth is negative (-80.2%) on the latest reported period — check if this is one-off or a trend.
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

StrongValuation

WeakBusiness Quality · Financial Health · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

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