Solid Stone Company Limited

Basic Materials — Building Materials · BSE

₹25.29−₹1.60 (−5.95%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Solid Stone Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Solid Stone Company Limited engages in the natural stone, building materials, and allied building business activities in India, the United States, the Middle East, and the United Kingdom.

IndustryBuilding Materials

SectorBasic Materials

Employees27

Annual revenue₹26 Cr

How does it make money?

Turns over ₹26 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 27 employees supports ₹95.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin15.6%

Net margin1.9%

Revenue / employee₹95.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

GRASIM INDUSTRIES LTDP/E 34.8x · ROE 5.5%

AMBUJA CEMENTS LTDP/E 20.4x · ROE 7.4%

SHREE CEMENT LIMITEDP/E 49.7x · ROE 7.0%

What is its competitive advantage?Little sign of one

Returns on capital of 9.5% 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.

ROCE9.5%

ROE2.2%

Peer median ROE7.4%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -16% while net margin moved +2% 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-16%

Margin effect+2%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.7% a year
✗ Profit has declined at 5.1% a year
✗ Latest-year revenue growth of -11.4% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

64/ 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

27.2x

3Y Median

22.6x

40 monthly readings · mean 23.9x · range 15.6x–36.2x

Sector Median

36.2x

median of 4 sector peers

⚠️Current valuation is approximately 20% above its 3y median of 22.6x. 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 25% below the peer median of 36.2x.

vs. its own history

Expensive

22.6x median over 40 months · +20%

vs. sector peers

Cheap

36.2x median of 4 peers · -25%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

27.2x

P/B

0.60x

EV/EBITDA

7.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 14.0% to 15.6% over 3 years.
Debt is being paid down
Total debt is down 12% over 3 years.
Cash generation is improving
Free cash flow is up 45% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Valuation above its historical average
At 27.2x the stock trades 20% above its own median of 22.6x.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.0% to 15.6%. 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 25% 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?

The debt load needs earnings to hold up
Debt is 4.4x 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 20% 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.
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 14%✓ 15.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.4x
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✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 9.5%
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

3 good · 6 neutral · 2 weak

Market Cap

₹14 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.2x

Fair

Fairly valued against the generic band

P/B Ratio

0.60x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.93

Profitable

Profitable on a per-share basis

ROE

2.2%

Weak

Weak capital efficiency

ROCE

9.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.78x

Moderate

Moderate leverage

Revenue Growth (YoY)

-11.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹25.29

Operating Margin

9.6%

Average

Average margins

Net Margin

2.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.98

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.32

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

26.4 / 25.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31 Cr	₹24 Cr	₹28 Cr	₹26 Cr	-5.7%
EBITDA	₹4 Cr	₹4 Cr	₹4 Cr	₹4 Cr	-2.2%
EBITDA Margin	14.0%	17.6%	15.1%	15.6%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-5.1%
EPS	₹1.09	₹1.59	₹1.53	₹0.93	-5.2%
ROE	2.8%	3.9%	3.7%	2.2%	—
ROCE	10.6%	11.7%	10.5%	9.5%	—
Total Debt	₹20 Cr	₹18 Cr	₹19 Cr	₹18 Cr	-4.1%
Free Cash Flow	₹3 Cr	₹4 Cr	₹3 Cr	₹4 Cr	+13.2%

🔴 Revenue has shrunk at 5.7% a year over 3 years.

🔴 EBITDA has shrunk at 2.2% a year over 3 years.

🟢 EBITDA Margin has risen from 14.0% to 15.6% over 3 years (+1.6 pts).

🔴 PAT (Net Profit) has shrunk at 5.1% a year over 3 years.

🔴 EPS has shrunk at 5.2% a year over 3 years.

🟡 ROE has held roughly flat at 2.2% over 3 years.

🔴 ROCE has fallen from 10.6% to 9.5% over 3 years (-1.1 pts).

🟢 Total Debt has shrunk at 4.1% a year over 3 years.

🟢 Free Cash Flow has grown at 13.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹50 Cr

Total Liabilities

₹27 Cr

Total Debt

₹18 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.5%

Corporate Actions

Ex-Dividend Date

19 Sept 2014

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 positive1 mixed4 general

This $7 Billion Stock Has Solid Technicals and Could Gain More Than 120% from Here

Barchart.com, 16 Oct

Sanco Industries (NSEI:SANCO) - Stock Analysis

Simply Wall Street, 01 Sept

Autoline Industries consolidated net profit rises 268.63% 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.

Midwest Reports Q1 Standalone Net Profit Of 211M Rupees, Revenue At 985M Rupees

Sahi, 12 AugResults

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

Black Stone Minerals LP (NYSE:BSM): A Growth-at-a-Reasonable-Price Stock Fitting Peter Lynch Criteria

ChartMill, 27 Jul

This multibagger SME stock rises 4% to hit a 52-week high after this business update | Do you own?

Livemint, 11 Sept

Watch Items

Revenue growth is negative (-11.4%) 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.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟢Financial HealthStrong13/20

🔴GrowthWeak4.1/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair7.5/15

🟡RiskModerate5.2/10

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

This thesis breaks if

✓EBITDA margin holds above 14%15.6%
✗Debt / EBITDA falls below 3x4.4x
✗Interest cover stays above 3x1.5x
✓Free cash flow remains positive₹4 Cr
✓ROCE stays above 8%9.5%