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Check Before You Invest : Madhav Marbles And Granites Ltd

BSE: 515093 NSE: MADHAV ISIN: INE925C01016
  |   Sector:  Construction & Infrastructure   |   Industry:  Ceramics/Marble/Granite/Sanitaryware

Snapshot

Q.1 Which industry/sub-sector does Madhav Marbles And Granites Ltd belong to?
Madhav Marbles And Granites Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.
Q.2 Is Madhav Marbles And Granites Ltd a good quality company?
Madhav Marbles And Granites Ltd is a quality company, based on a 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 Madhav Marbles And Granites Ltd undervalued or overvalued?
Madhav Marbles And Granites Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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 - 14.59
Price to Book 0.24 0.30
Price to Sales 1.12 0.96
EV to EBITDA 11.16 8.38
Q.4 Is Madhav Marbles And Granites Ltd a good buy now?
Madhav Marbles And Granites Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd revenue growth is -22.4% for FY-2025, which is below its 5-year CAGR of -12.48%, indicating slower growth.

Q.2 Gross Profit margin of Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.3% for FY-2025, which is in line with its 5-year median of 11.3%, indicating stable margins.

Q.3 Operating Profit Margin of Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.19% for FY-2025, which is below its 5-year median of 1.4% indicating decreasing margins.

Q.4 Net Profit Margin of Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Net Profit Margin is 2.43% for FY-2025, is in line with its 5-year median of 2.43%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.3 11.3
Operating Profit Margin (%) 0.19 1.4
Net Profit Margin (%) 2.43 2.43

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Return on Asset is 0.45%, which is below its 5-year historical median of 0.58%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Return on capital employed is 1.32% for FY-2025, which is in line with its 5-year historical median of 1.32%. 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 Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Return on equity is 0.55% for FY-2025, which is below its 5-year historical median of 0.69%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Cash conversion cycle is 417 days, above its 5-year historical median of 283 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.19 0.31
ROE (%) 0.55 0.69
ROCE (%) 1.32 1.32
Cash Conversion Cycle 417 days 283 days

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

Q.9 Debt to Equity ratio of Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Debt-to-Equity ratio is 0.08, 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 Madhav Marbles And Granites Ltd?
Madhav Marbles And Granites Ltd Debt to cash flow from operations is -6.65, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Madhav Marbles And Granites Ltd?

Q.1 Promoter shareholding and pledge status of Madhav Marbles And Granites Ltd?
Promoters hold 45.54% of the Madhav Marbles And Granites Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Madhav Marbles And Granites Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Madhav Marbles And Granites Ltd vs industry peers?
Madhav Marbles And Granites Ltd revenue CAGR is -12.48%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -22.4 0
Gross Profit Growth (%) 25 9
Operating Profit Growth (%) 0 1.1
Net Profit Growth (%) 1,775 15.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.19 0.55
ROE (%) 0.55 2.33
ROCE (%) 1.32 5.52
Cash Conversion Cycle (days) 416.77 187

Valuation & price assessment

Q.1 Stock return of Madhav Marbles And Granites Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -2.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-2.5% -9.1% -4.7% -20.4%
Q.2 Valuation ratios of Madhav Marbles And Granites Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 14.59, indicating that the stock is trading below 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 - 14.59 24.16
Price to Book 0.24 0.30 0.90
Price to Sales 1.12 0.96 1.28
EV to EBITDA 11.16 8.38 10.79

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