Aro Granite Industries Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:52 am

Market Cap	72.1 Cr.
Current Price	47.1
High / Low	69.3/41.1
Stock P/E
Book Value	121
Dividend Yield	0.00 %
ROCE	5.03 %
ROE	0.68 %
Face Value	10.0
PEG Ratio	0.00

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

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Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Inani Marbles & Industries Ltd	47.7 Cr.	25.6	38.2/18.0	11.7	29.4	0.16 %	4.56 %	1.74 %	2.00
Glittek Granites Ltd	13.6 Cr.	5.23	6.00/2.65		4.13	0.00 %	15.2 %	76.6 %	5.00
Elegant Marbles and Grani Industries Ltd	102 Cr.	280	364/215	19.7	438	0.98 %	5.53 %	4.10 %	10.0
Divyashakti Ltd	77.7 Cr.	75.7	98.3/66.1	44.7	121	2.64 %	2.69 %	1.88 %	10.0
Dhyaani Tradeventtures Ltd	26.0 Cr.	15.3	35.4/11.0	33.8	20.3	0.00 %	21.9 %	17.4 %	10.0
Industry Average	1,334.00 Cr	201.37		26.50	173.14	0.38%	8.34%	13.44%	7.90

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	54.16	63.85	57.62	49.11	45.03	37.60	34.31	46.96	51.43	37.42	33.35	32.90	37.55
Expenses	44.67	54.54	52.52	42.94	39.05	31.69	34.85	39.93	42.96	31.86	26.58	24.92	32.44
Operating Profit	9.49	9.31	5.10	6.17	5.98	5.91	-0.54	7.03	8.47	5.56	6.77	7.98	5.11
OPM %	17.52%	14.58%	8.85%	12.56%	13.28%	15.72%	-1.57%	14.97%	16.47%	14.86%	20.30%	24.26%	13.61%
Other Income	-1.58	1.98	1.21	-0.25	0.09	0.90	0.18	0.05	0.59	1.30	0.21	0.35	1.18
Interest	1.59	2.21	2.08	2.04	2.52	3.30	3.24	3.72	3.88	3.50	3.71	5.01	3.54
Depreciation	3.17	3.18	3.18	3.20	3.14	3.21	3.19	3.20	2.94	2.92	2.92	2.94	2.60
Profit before tax	3.15	5.90	1.05	0.68	0.41	0.30	-6.79	0.16	2.24	0.44	0.35	0.38	0.15
Tax %	5.71%	15.93%	-8.57%	123.53%	56.10%	-126.67%	5.15%	-200.00%	41.07%	11.36%	77.14%	5.26%	-400.00%
Net Profit	2.97	4.96	1.13	-0.16	0.18	0.68	-7.14	0.49	1.32	0.39	0.08	0.36	0.75
EPS in Rs	1.94	3.24	0.74	-0.10	0.12	0.44	-4.67	0.32	0.86	0.25	0.05	0.24	0.49

Last Updated: September 11, 2024, 2:09 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 11, 2024, 2:09 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	186	251	253	213	237	199	171	177	179	224	163	154	141
Expenses	161	216	224	193	207	186	148	159	155	194	144	123	116
Operating Profit	25	34	29	20	29	13	24	19	24	30	19	31	25
OPM %	14%	14%	11%	9%	12%	6%	14%	10%	13%	13%	12%	20%	18%
Other Income	-0	5	5	1	1	1	2	3	1	1	1	0	3
Interest	5	5	6	5	5	4	5	6	5	8	13	16	16
Depreciation	5	5	9	9	9	9	8	11	11	13	13	12	11
Profit before tax	15	28	19	7	16	1	13	5	8	11	-6	3	1
Tax %	26%	26%	12%	14%	23%	9%	22%	30%	24%	17%	-2%	61%
Net Profit	11	21	17	6	13	1	10	4	6	9	-6	1	2
EPS in Rs	7.36	13.78	10.91	3.83	8.25	0.76	6.35	2.36	3.95	5.82	-3.78	0.86	1.03
Dividend Payout %	9%	7%	9%	26%	12%	0%	16%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	90.91%	-19.05%	-64.71%	116.67%	-92.31%	900.00%	-60.00%	50.00%	50.00%	-166.67%	116.67%
Change in YoY Net Profit Growth (%)	0.00%	-109.96%	-45.66%	181.37%	-208.97%	992.31%	-960.00%	110.00%	0.00%	-216.67%	283.33%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	-5%
5 Years:	-2%
3 Years:	-5%
TTM:	-22%

Compounded Profit Growth
10 Years:	-22%
5 Years:	-33%
3 Years:	-40%
TTM:	-22%

Stock Price CAGR
10 Years:	-5%
5 Years:	5%
3 Years:	-14%
1 Year:	-3%

Return on Equity
10 Years:	3%
5 Years:	2%
3 Years:	1%
Last Year:	1%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:41 am

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	10	15	15	15	15	15	15	15	15	15	15	15	15
Reserves	112	127	139	143	154	155	165	166	172	181	175	177	170
Borrowings	95	109	119	115	102	93	129	159	168	199	205	189	181
Other Liabilities	31	41	36	35	37	41	34	54	48	56	55	64	59
Total Liabilities	249	292	310	309	308	304	343	395	404	451	450	445	426
Fixed Assets	85	84	74	73	91	90	90	139	174	163	160	149	145
CWIP	0	0	7	21	2	6	23	42	1	8	1	1	1
Investments	0	0	0	0	0	1	1	1	1	1	1	1	1
Other Assets	164	208	229	216	215	207	230	213	228	280	288	294	280
Total Assets	249	292	310	309	308	304	343	395	404	451	450	445	426

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	-17	-1	0	21	16	22	-3	63	1	-18	14	35
Cash from Investing Activity +	-6	1	-4	-24	-7	-11	-26	-78	-4	-6	-3	0
Cash from Financing Activity +	23	13	8	-5	-15	-11	32	12	3	24	-15	-32
Net Cash Flow	-1	13	5	-9	-6	0	2	-3	-1	-0	-4	3

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-70.00	-75.00	-90.00	-95.00	-73.00	-80.00	-105.00	-140.00	-144.00	-169.00	-186.00	-158.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	142	129	122	138	127	128	122	121	131	119	137	117
Inventory Days	257	216	258	306	373	413	621	725	759	793	1,299	1,623
Days Payable	51	51	43	49	54	88	79	158	150	148	233	306
Cash Conversion Cycle	348	294	337	396	446	453	664	688	739	764	1,204	1,435
Working Capital Days	272	237	262	302	268	296	350	320	373	370	534	557
ROCE %	10%	11%	10%	4%	8%	2%	6%	3%	4%	5%	2%	5%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	41.06%	41.06%	41.06%	41.06%	41.06%	41.06%	41.06%	41.06%	41.06%	41.06%	41.08%	41.08%
FIIs	0.35%	0.02%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.02%	0.03%	0.60%
Government	0.92%	1.12%	1.12%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Public	57.66%	57.80%	57.76%	58.93%	58.93%	58.94%	58.94%	58.93%	58.93%	58.92%	58.88%	58.32%
No. of Shareholders	13,613	13,984	13,886	13,963	13,918	13,420	13,198	13,101	12,627	12,251	11,917	12,254

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	0.89	-3.84	5.89	4.02	2.14
Diluted EPS (Rs.)	0.89	-3.84	5.89	4.02	2.14
Cash EPS (Rs.)	8.52	4.54	14.15	11.19	9.24
Book Value[Excl.RevalReserv]/Share (Rs.)	125.51	124.58	128.38	122.64	118.62
Book Value[Incl.RevalReserv]/Share (Rs.)	125.51	124.58	128.38	122.64	118.62
Revenue From Operations / Share (Rs.)	101.37	107.13	146.89	117.24	116.15
PBDIT / Share (Rs.)	20.41	12.81	20.55	15.97	14.17
PBIT / Share (Rs.)	12.75	4.49	12.23	8.73	7.29
PBT / Share (Rs.)	2.22	-3.86	7.04	5.21	3.38
Net Profit / Share (Rs.)	0.85	-3.78	5.82	3.95	2.36
PBDIT Margin (%)	20.13	11.95	13.99	13.61	12.19
PBIT Margin (%)	12.58	4.19	8.32	7.44	6.27
PBT Margin (%)	2.19	-3.60	4.79	4.44	2.91
Net Profit Margin (%)	0.84	-3.53	3.96	3.37	2.02
Return on Networth / Equity (%)	0.68	-3.03	4.53	3.22	1.98
Return on Capital Employeed (%)	7.67	2.59	6.78	5.46	4.89
Return On Assets (%)	0.29	-1.28	1.97	1.49	0.91
Long Term Debt / Equity (X)	0.24	0.31	0.33	0.22	0.15
Total Debt / Equity (X)	0.98	1.08	1.01	0.85	0.82
Asset Turnover Ratio (%)	0.34	0.36	0.52	0.44	0.48
Current Ratio (X)	1.53	1.54	1.58	1.41	1.26
Quick Ratio (X)	0.41	0.46	0.57	0.54	0.48
Inventory Turnover Ratio (X)	0.40	0.54	0.93	0.75	0.90
Interest Coverage Ratio (X)	1.94	1.53	3.96	4.54	3.63
Interest Coverage Ratio (Post Tax) (X)	1.08	0.54	2.12	2.12	1.60
Enterprise Value (Cr.)	248.05	255.89	273.27	213.74	168.86
EV / Net Operating Revenue (X)	1.60	1.56	1.22	1.19	0.95
EV / EBITDA (X)	7.94	13.05	8.69	8.75	7.79
MarketCap / Net Operating Revenue (X)	0.43	0.34	0.37	0.35	0.16
Price / BV (X)	0.35	0.29	0.42	0.33	0.15
Price / Net Operating Revenue (X)	0.43	0.34	0.37	0.35	0.16
EarningsYield	0.01	-0.10	0.10	0.09	0.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 12.59

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Overvalued by 73.27% compared to the current share price 47.10

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of as of December 22, 2024 is: 9.62

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Overvalued by 79.58% compared to the current share price 47.10

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -23.57%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (156.62 cr) compared to borrowings (143.31 cr), indicating strong financial stability. The company has shown consistent growth in sales (196.00 cr) and profit (9.31 cr) over the years.	The stock has a low average ROCE of 5.83%, which may not be favorable. The stock has a high average Working Capital Days of 345.08, which may not be favorable. The stock has a high average Cash Conversion Cycle of 427.58, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 0.84%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 7.67% (Industry Average ROCE: 8.34%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 0.68% (Industry Average ROE: 13.44%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 1.08
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 0.41
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 0 (Industry average Stock P/E: 26.5)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.98
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Aro Granite Industries Ltd. is a Public Limited Listed company incorporated on 03/05/1988 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1988PLC031510 and registration number is 031510. Currently company belongs to the Industry of Granites/Marbles. Company’s Total Operating Revenue is Rs. 224.74 Cr. and Equity Capital is Rs. 15.30 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Granites/Marbles	1001, 10th Floor, DLF Tower A, Jasola, New Delhi Delhi 110025	investorgrievance@arotile.com http://www.arotile.com

Management
Name	Position Held
Mr. Sunil Kumar Arora	Managing Director
Mr. Sahil Arora	Whole Time Director
Mrs. Sujata Arora	Director
Mr. Dinesh Chandra Kothari	Independent Director
Mr. Sundareshwara G Sastry	Independent Director
Mrs. Vinita Sood	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹12.59, which is 73.27% lower than the current market price of ₹47.10. The stock has a market capitalization of 72.1 Cr. and recorded a high/low of 69.3/41.1 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹170 Cr and total liabilities of ₹426 Cr.

What is the Market Cap of ?

The Market Cap of is 72.1 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 47.1.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 69.3/41.1.

What is the Stock P/E of ?

The Stock P/E of is .

What is the Book Value of ?

The Book Value of is 121.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is 5.03 %.

What is the ROE of ?

The ROE of is 0.68 %.

What is the Face Value of ?

The Face Value of is 10.0.