Pokarna Limited

Industrials — Building Products & Equipment · NSE

₹718.00+₹20.80 (+2.98%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. 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

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Pokarna Limited, together with its subsidiaries, engages in the quarrying, manufacturing, processing, and selling of granites in India, China, the United States, and internationally. It operates through the Granite and Quartz Surfaces segments.

IndustryBuilding Products & Equipment

SectorIndustrials

Annual revenue₹572 Cr

How does it make money?

Turns over ₹572 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation.

EBITDA margin33.0%

Net margin14.1%

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 10.7% 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.

ROCE10.7%

ROE9.4%

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 -21% while net margin moved +55% 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-21%

Margin effect+55%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 7.6% a year
✗ Profit CAGR of only 7.0%

Quality vs. Valuation

Company Quality

47/ 100

Average

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.

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

Historical Valuation

Current P/E

23.5x

3Y Median

24.9x

40 monthly readings · mean 26.1x · range 12.1x–46.2x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 24.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 74% below the peer median of 88.8x.

vs. its own history

Fair

24.9x median over 40 months · -6%

vs. sector peers

Cheap

88.8x median of 3 peers · -74%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

23.5x

P/B

2.60x

EV/EBITDA

14.1x

PEG

3.35

Dividend Yield

0.08%

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 25.0% to 33.0% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 13.0% to 9.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.9% to 10.7% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 32% against revenue growth of -21% — customers are taking longer to pay.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 32% against revenue up -21% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.2x to 4.7x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹143 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 25.0% to 33.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 74% 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?

Sales are being booked faster than collected
Receivables are up 32% against revenue up -21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 13.0% to 9.4%. 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.
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 31%✓ 33.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹143 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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 · 6 neutral · 1 weak

Market Cap

₹2,226 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.60x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹30.61

Profitable

Profitable on a per-share basis

ROE

9.4%

Moderate

Moderate capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

10.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

50.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.08%

Modest

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

Free Cash Flow

-₹143 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹718

Operating Margin

29.7%

Good

Healthy core-business profitability

Net Margin

16.0%

Good

Strong bottom-line conversion

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

709.7 / 805.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹725 Cr	₹688 Cr	₹930 Cr	₹572 Cr	-7.6%
EBITDA	₹181 Cr	₹221 Cr	₹347 Cr	₹189 Cr	+1.3%
EBITDA Margin	25.0%	32.2%	37.3%	33.0%	—
PAT (Net Profit)	₹66 Cr	₹87 Cr	₹188 Cr	₹81 Cr	+7.0%
EPS	₹21.23	₹28.18	₹60.49	₹26	+7.0%
ROE	13.0%	14.7%	24.1%	9.4%	—
ROCE	15.9%	17.8%	26.8%	10.7%	—
Total Debt	₹459 Cr	₹401 Cr	₹370 Cr	₹458 Cr	-0.0%
Free Cash Flow	₹102 Cr	₹146 Cr	₹93 Cr	-₹143 Cr	—

🔴 Revenue has shrunk at 7.6% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.3% a year).

🟢 EBITDA Margin has risen from 25.0% to 33.0% over 3 years (+8.0 pts).

🟢 PAT (Net Profit) has grown at 7.0% a year over 3 years.

🟢 EPS has grown at 7.0% a year over 3 years.

🔴 ROE has fallen from 13.0% to 9.4% over 3 years (-3.6 pts).

🔴 ROCE has fallen from 15.9% to 10.7% over 3 years (-5.2 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.0% a year).

🔴 Free Cash Flow has turned negative, from ₹102 Cr to -₹143 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,616 Cr

Total Liabilities

₹759 Cr

Total Debt

₹458 Cr

Cash & Equivalents

₹14 Cr

Operating Cash Flow

₹183 Cr

Capex

-₹327 Cr

Shareholding (proxy)

Institutional Holding

11.7%

Insider Holding

64.8%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

20 Jul 2026

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

Pokarna Share Price near 52-week low: analysis

Univest, 12 Oct

Optimistic Investors Push Pokarna Limited (NSE:POKARNA) Shares Up 37% But Growth Is Lacking

Simply Wall Street, 06 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Pokarna Share Price at fresh 52-week low, stock analysis

Univest, 12 Oct

Pokarna Q1FY26 consolidated profit jumps 50% to ₹4,260 lakh on quartz strength

scanx.trade, 08 AugResults

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

Pokarna 52 Week Low Streak: fundamentals and sector view

Univest, 13 Oct

Multibagger stock Pokarna share price close to record high. Experts see up to 15% CAGR share price rise in long term

Livemint, 13 NovPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟡Financial HealthAdequate10.5/20

🔴GrowthWeak4.8/20

🟡ProfitabilityModerate6.9/15

🟡ValuationFair9.3/15

🔴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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 31%33.0%
✗Debt / EBITDA stays below 2x2.4x
✗Free cash flow remains positive-₹143 Cr
✓ROCE stays above 8%10.7%
✓Interest cover stays above 4x4.7x