Solid Stone Company Ltd Valuation Shifts to Very Attractive Amid Mixed Market Performance

Valuation Metrics Signal Improved Price Attractiveness

Recent data reveals that Solid Stone Company Ltd’s price-to-earnings (P/E) ratio stands at 24.10, a figure that, while not low in absolute terms, is considered very attractive within its industry context. The price-to-book value (P/BV) ratio has declined to 0.69, indicating the stock is trading below its book value and suggesting potential undervaluation. This contrasts favourably with many peers in the miscellaneous sector, where valuations often command higher multiples.

Enterprise value to EBITDA (EV/EBITDA) is another critical metric, with Solid Stone reporting a ratio of 8.68. This is significantly lower than several competitors such as Asian Granito (15.43) and Exxaro Tiles (14.31), highlighting a comparatively cheaper valuation on an operational earnings basis. The EV to EBIT ratio of 11.91 further supports this view, indicating that the company’s earnings before interest and tax are being valued conservatively by the market.

Other valuation indicators such as EV to capital employed (0.83) and EV to sales (1.24) reinforce the narrative of improved price attractiveness. The PEG ratio remains at 0.00, reflecting either a lack of earnings growth or data unavailability, which warrants cautious interpretation.

Comparative Analysis with Industry Peers

When benchmarked against key competitors, Solid Stone’s valuation stands out as very attractive. Asian Granito, also rated very attractive, trades at a higher P/E of 32.53 and EV/EBITDA of 15.43, suggesting a premium valuation. Orient Bell, classified as very expensive, commands a P/E of 46.63 and EV/EBITDA of 12.73, reflecting strong market confidence but also higher risk of overvaluation.

Conversely, companies such as Global Surfaces and Regency Ceramics are labelled risky due to loss-making operations or negative earnings multiples, underscoring the relative stability of Solid Stone despite its challenges. The presence of several risky peers in the sector highlights the importance of valuation discipline and quality assessment for investors.

Solid Stone’s return on capital employed (ROCE) is 6.98%, while return on equity (ROE) is a modest 2.85%. These profitability metrics are subdued, indicating operational challenges and limited shareholder returns. However, the low valuation multiples may compensate for these weaknesses if the company can improve its earnings trajectory.

Stock Price and Market Performance Overview

Solid Stone’s current share price is ₹28.67, up 6.74% on the day, with a trading range between ₹26.78 and ₹30.36. The stock’s 52-week high and low stand at ₹41.29 and ₹24.41 respectively, indicating a significant drawdown from peak levels. This volatility reflects broader sectoral pressures and company-specific factors.

Examining returns relative to the Sensex reveals a mixed picture. Over the past week, Solid Stone outperformed the benchmark with a 1.34% gain versus Sensex’s 0.64%. However, over longer horizons, the stock has underperformed markedly. The one-year return is -15.68% compared to Sensex’s 9.01%, while the five-year and ten-year returns are -45.13% and -36.99% respectively, against Sensex gains of 64.25% and 254.70%. This persistent underperformance underscores the challenges faced by the company and the sector at large.

Mojo Score and Rating Implications

MarketsMOJO assigns Solid Stone a Mojo Score of 26.0, reflecting a cautious stance on the stock. The Mojo Grade has recently been downgraded from Sell to Strong Sell as of 13 Nov 2025, signalling increased risk perception despite the improved valuation parameters. The Market Cap Grade remains low at 4, consistent with the company’s micro-cap status and limited market liquidity.

This downgrade suggests that while valuation metrics have become more attractive, underlying fundamentals and market sentiment remain weak. Investors should weigh these factors carefully, considering the company’s subdued profitability and historical underperformance against the broader market.

Investment Outlook and Considerations

Solid Stone Company Ltd’s shift to a very attractive valuation grade presents a potential entry point for value-oriented investors seeking exposure to the miscellaneous sector. The low P/BV and EV/EBITDA ratios relative to peers indicate that the stock is trading at a discount, possibly reflecting market concerns over earnings growth and operational efficiency.

However, the company’s modest ROCE and ROE, combined with a zero PEG ratio, highlight the absence of strong growth catalysts at present. The stock’s long-term underperformance relative to the Sensex further emphasises the need for caution. Investors should monitor upcoming earnings releases and sector developments closely to assess any improvement in fundamentals.

In summary, while valuation parameters have improved significantly, the overall investment case remains tempered by profitability challenges and a negative rating outlook. A balanced approach, incorporating both valuation and quality metrics, is advisable for those considering Solid Stone Company Ltd as part of their portfolio.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →