Madhav Marbles and Granites Limited

Industrials — Building Products & Equipment · NSE

₹32.15−₹0.02 (−0.06%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Madhav Marbles and Granites Limited engages in the processing and exporting of granite, marble, quartz, limestone, and natural stones in India and internationally. It operates in three segments: Granite and Stone, Realty, and Power Generation.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees133

Annual revenue₹31 Cr

How does it make money?

Turns over ₹31 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 133 employees supports ₹23.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹23.0 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 1.3% 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 -35% while net margin moved -86% 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-35%

Margin effect-86%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

18.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 17% over 3 years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 8.2% to 6.4% over 3 years.

Red Flags

3 items require attention · 3 high

🔴High leverageFinancial
Debt/Equity of 6.74x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 17% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 8.2% to 6.4%. 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 4.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.1x
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✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 1.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

3 good · 2 neutral · 6 weak

Market Cap

₹29 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.23x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.26

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.3%

Weak

Weak capital efficiency

ROCE

1.3%

Weak

Low return on total capital employed

Debt/Equity

6.74x

High

High leverage

Revenue Growth (YoY)

-1.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

75.8%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-7.3%

Weak

Thin margins leave little room for error

Net Margin

-0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

33.9 / 34.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹47 Cr	₹40 Cr	₹31 Cr	₹31 Cr	-13.5%
EBITDA	₹4 Cr	₹2 Cr	₹2 Cr	₹2 Cr	-20.5%
EBITDA Margin	8.2%	5.1%	6.7%	6.4%	—
PAT (Net Profit)	-₹4 Cr	-₹2 Cr	-₹1 Cr	-₹0 Cr	—
EPS	₹-4.3	₹-2.58	₹-1.66	₹-0.4	—
ROE	-3.0%	-1.8%	-1.2%	-0.3%	—
ROCE	-0.5%	-0.5%	-0.3%	1.3%	—
Total Debt	₹10 Cr	₹15 Cr	₹12 Cr	₹8 Cr	-6.1%
Free Cash Flow	₹18 Cr	-₹6 Cr	₹2 Cr	₹5 Cr	-36.8%

🔴 Revenue has shrunk at 13.5% a year over 3 years.

🔴 EBITDA has shrunk at 20.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.2% to 6.4% over 3 years (-1.8 pts).

🟢 ROE has risen from -3.0% to -0.3% over 3 years (+2.8 pts).

🟢 ROCE has risen from -0.5% to 1.3% over 3 years (+1.8 pts).

🟢 Total Debt has shrunk at 6.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 36.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹137 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.7%

Corporate Actions

Ex-Dividend Date

23 Sept 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

2 positive1 mixed3 general

Madhav Marbles and Granites (MADHAV.NS) Edges Up 1.86% to ₹32.88, Holding Above ₹31.24 Support - Dividend ETF

siam.in, 12 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Madhav Marbles and Granites Bull Case vs Bear Case for 2026

Univest, 15 Sept

Madhav Marbles Board Approves 18.01% Subsidiary Stake Acquisition for Real Estate Diversification

scanx.trade, 25 MarM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Madhav Marbles and Granites (MADHAV.NS) Climbs 2.61% to ₹35.4, Approaches Key Resistance Zone - Momentum Stock Picks

siam.in, 20 Sept

Madhav Marbles sets Sept 30 for 37th AGM; e-voting opens Sept 27

scanx.trade, 06 Sept

Diamond Power Infrastructure consolidated net profit rises 256.19% in the June 2026 quarter

Business Standard, 13 AugResults

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

Watch Items

Revenue growth is negative (-1.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · 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. 3 high-severity red flags sit 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 ↑