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Check Before You Invest : Asian Granito India Ltd

BSE: 532888 NSE: ASIANTILES ISIN: INE022I01019
  |   Sector:  Construction & Infrastructure   |   Industry:  Ceramics/Marble/Granite/Sanitaryware

Snapshot

Q.1 Which industry/sub-sector does Asian Granito India Ltd belong to?
Asian Granito India Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.
Q.2 Is Asian Granito India Ltd a good quality company?
Asian Granito India Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Asian Granito India Ltd undervalued or overvalued?
Asian Granito India Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 29.73 6.75
Price to Book 1.22 0.75
Price to Sales 1.1 0.60
EV to EBITDA 14 12.59
Q.4 Is Asian Granito India Ltd a good buy now?
Asian Granito India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Asian Granito India Ltd?
Asian Granito India Ltd revenue growth is 1.8% for FY-2025, which is below its 5-year CAGR of 4.94%, indicating slower growth.

Q.2 Gross Profit margin of Asian Granito India Ltd?
Asian Granito India Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.8% for FY-2025, which is in line with its 5-year median of 3.8%, indicating stable margins.

Q.3 Operating Profit Margin of Asian Granito India Ltd?
Asian Granito India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.6% for FY-2025, which is in line with its 5-year median of 4.6% indicating stable margins.

Q.4 Net Profit Margin of Asian Granito India Ltd?
Asian Granito India Ltd Net Profit Margin is 1.32% for FY-2025, is in line with its 5-year median of 1.32%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.8 3.8
Operating Profit Margin (%) 4.6 4.6
Net Profit Margin (%) 1.32 1.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Asian Granito India Ltd?
Asian Granito India Ltd Return on Asset is 1.03%, which is in line with its 5-year historical median of 1.03%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Asian Granito India Ltd?
Asian Granito India Ltd Return on capital employed is 2.18% for FY-2025, which is in line with its 5-year historical median of 2.18%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Asian Granito India Ltd?
Asian Granito India Ltd Return on equity is 1.57% for FY-2025, which is in line with its 5-year historical median of 1.57%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Asian Granito India Ltd?
Asian Granito India Ltd Cash conversion cycle is 96 days, below its 5-year historical median of 103 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.78 0.91
ROE (%) 1.57 1.57
ROCE (%) 2.18 2.18
Cash Conversion Cycle 96 days 103 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Asian Granito India Ltd?
Asian Granito India Ltd Debt-to-Equity ratio is 0.19, which is lower the industry average of 0.32, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Asian Granito India Ltd?
Asian Granito India Ltd Debt to cash flow from operations is 3.2, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Asian Granito India Ltd?

Q.1 Promoter shareholding and pledge status of Asian Granito India Ltd?
Promoters hold 38.79% of the Asian Granito India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Asian Granito India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Asian Granito India Ltd vs industry peers?
Asian Granito India Ltd revenue CAGR is 4.94%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1.8 0
Gross Profit Growth (%) 84.4 9
Operating Profit Growth (%) 73.2 1.1
Net Profit Growth (%) 0 15.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.78 0.55
ROE (%) 1.57 2.33
ROCE (%) 2.18 5.52
Cash Conversion Cycle (days) 95.54 187

Valuation & price assessment

Q.1 Stock return of Asian Granito India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -5.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-5.2% -11.8% 7.7% 27.6%
Q.2 Valuation ratios of Asian Granito India Ltd vs historical?
The current P/E ratio of 29.73 is higher than its historical median of 6.75, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 29.73 6.75 24.16
Price to Book 1.22 0.75 0.90
Price to Sales 1.1 0.60 1.28
EV to EBITDA 14 12.59 10.79

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