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Check Before You Invest : Marble City India Ltd

BSE: 531281 NSE: ISIN: INE807H01023
  |   Sector:  Construction & Infrastructure   |   Industry:  Ceramics/Marble/Granite/Sanitaryware

Snapshot

Q.1 Which industry/sub-sector does Marble City India Ltd belong to?
Marble City India Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.
Q.2 Is Marble City India Ltd a good quality company?
Marble City 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 Marble City India Ltd undervalued or overvalued?
Marble City India 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 30.12 16.29
Price to Book 3.65 0.69
Price to Sales 3.19 0.24
EV to EBITDA 11.43 10.70
Q.4 Is Marble City India Ltd a good buy now?
Marble City India 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 Marble City India Ltd?
Marble City India Ltd revenue growth is 28.6% for FY-2025, which is above its 5-year CAGR of -2.96%, indicating faster growth.

Q.2 Gross Profit margin of Marble City India Ltd?
Marble City India Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is above its 5-year median of 1.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Marble City India Ltd?
Marble City India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.53% for FY-2025, which is above its 5-year median of 10.75% indicating increasing margins.

Q.4 Net Profit Margin of Marble City India Ltd?
Marble City India Ltd Net Profit Margin is 4.04% for FY-2025, is above its 5-year median of 0.68%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.3 1.8
Operating Profit Margin (%) 22.53 10.75
Net Profit Margin (%) 4.04 0.68

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Marble City India Ltd?
Marble City India Ltd Return on Asset is 1.52%, which is above its 5-year historical median of 0.56%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Marble City India Ltd?
Marble City India Ltd Return on capital employed is 11.75% for FY-2025, which is above its 5-year historical median of 7.4%. 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 Marble City India Ltd?
Marble City India Ltd Return on equity is 5.55% for FY-2025, which is above its 5-year historical median of 1.95%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Marble City India Ltd?
Marble City India Ltd Cash conversion cycle is 471 days, above its 5-year historical median of 357 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) 0.44 0.57
ROE (%) 5.55 1.95
ROCE (%) 11.75 7.4
Cash Conversion Cycle 471 days 357 days

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

Q.9 Debt to Equity ratio of Marble City India Ltd?
Marble City India Ltd Debt-to-Equity ratio is 1.53, which is above the industry average of 0.32, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Marble City India Ltd?
Marble City India Ltd Debt to cash flow from operations is -4.26, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Marble City India Ltd?

Q.1 Promoter shareholding and pledge status of Marble City India Ltd?
Promoters hold 37.67% of the Marble City India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Marble City India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Marble City India Ltd vs industry peers?
Marble City India Ltd revenue CAGR is -2.96%, 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 (%) 28.6 0
Gross Profit Growth (%) 0 9
Operating Profit Growth (%) 116.7 1.1
Net Profit Growth (%) 0 15.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.44 0.55
ROE (%) 5.55 2.33
ROCE (%) 11.75 5.52
Cash Conversion Cycle (days) 470.51 187

Valuation & price assessment

Q.1 Stock return of Marble City India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 34.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
34.9% 84% 95% -34.4%
Q.2 Valuation ratios of Marble City India Ltd vs historical?
The current P/E ratio of 30.12 is higher than its historical median of 16.29, 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 30.12 16.29 24.16
Price to Book 3.65 0.69 0.90
Price to Sales 3.19 0.24 1.28
EV to EBITDA 11.43 10.70 10.79

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