Aro Granite Industries Ltd (AROGRANITE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lexus Granito

Archies

Atlas Cycles

Pearl Polymers

Madhav Marbles

Kshitij Polyline

Aro Granite Inds

A B M Internatl.

Essex Marine

Divyadhan Recy.

Ganga Bath Fitt.

Why is Aro Granite Industries Ltd ?

Weak Long Term Fundamental Strength with a -181.61% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 10.08 times
The company has been able to generate a Return on Equity (avg) of 1.39% signifying low profitability per unit of shareholders funds

Negative results in Sep 25

NET SALES(Latest six months) At Rs 47.31 cr has Grown at -28.49%
PAT(Latest six months) At Rs -2.43 cr has Grown at -28.49%
INTEREST(Latest six months) At Rs 7.75 cr has Grown at 24.20%

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -40.24%, its profits have risen by 59.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -40.24% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified consumer products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Aro Granite Inds for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aro Granite Inds

-40.24%

-0.72

56.02%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.35%

EBIT Growth (5y)

-181.61%

EBIT to Interest (avg)

1.02

Debt to EBITDA (avg)

10.97

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

0.45

Tax Ratio

30.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.51%

ROE (avg)

1.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.25

EV to EBIT

-68.39

EV to EBITDA

25.72

EV to Capital Employed

0.57

EV to Sales

1.77

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.84%

ROE (Latest)

-1.31%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 9.16 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.81 times

DEBTORS TURNOVER RATIO(HY)

Highest at 4.20 times

-18What is not working for the Company

NET SALES(Latest six months)

At Rs 47.31 cr has Grown at -28.49%

PAT(Latest six months)

At Rs -2.43 cr has Grown at -28.49%

INTEREST(Latest six months)

At Rs 7.75 cr has Grown at 24.20%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.49 times

PBT LESS OI(Q)

Lowest at Rs -6.27 cr.

Loading Valuation Snapshot...

Here's what is working for Aro Granite Inds

Cash and Cash Equivalents - Half Yearly

Highest at Rs 9.16 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.81 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 4.20 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Aro Granite Inds

Net Sales - Quarterly

At Rs 20.27 cr has Fallen at -28.0% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 28.15 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs -2.43 cr has Grown at -28.49%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 0.49 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales - Quarterly

Lowest at Rs 20.27 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Interest - Quarterly

Highest at Rs 4.27 cr

in the last five quarters and Increased by 22.70 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -6.27 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)