ARO Granite Industries Limited (AROGRANITE) AI Stock Analysis

• Market Cap: ₹432.68M
• Dividend Yield: N/A
• Average Volume (3M): 16.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -21.28%
• EPS Growth: 59.71%
• Country: US
• Employees: 248
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): -1.63
• Shares Outstanding: 15,300,000
• 10 Day Avg. Volume: 2,985
• 30 Day Avg. Volume: 16,510
• PEG Ratio: 0.01
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 1.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹27.00 ▼(-18.16% Downside)

AROGRANITE's overall stock score is primarily impacted by its financial performance, which shows declining revenues and high leverage, though strong cash flow provides some stability. Technical analysis indicates a bearish trend, and poor valuation metrics further weigh down the score.

Positive Factors

Strong free cash flow generation

Consistent free cash flow despite net losses shows the business converts sales to cash effectively. This durable cash generation supports capex, working capital and debt servicing, providing financial flexibility to fund restructuring or strategic investments over the medium term.

Export-driven, diversified revenue base

A material export component and sales to distributors, retailers and contractors reduce concentration risk and broaden demand sources. Long-term supplier and client partnerships support steadier order flows and pricing ability, enhancing revenue resilience across cycles.

Stable equity ratio and consistent shareholder equity

A stable equity ratio indicates a meaningful portion of assets financed by equity, supporting solvency and creditor confidence. This structural capital base, combined with cash generation, preserves borrowing headroom and operational continuity through industry downturns.

Negative Factors

Declining revenue trend

A significant revenue contraction reduces operating leverage and scale benefits, making fixed costs harder to cover and limiting reinvestment capacity. If sustained, declining sales erode margins, constrain cash generation growth, and necessitate strategic action to restore top-line momentum.

High financial leverage

Elevated leverage raises fixed interest and principal obligations, lowering financial flexibility. In a cyclical construction-materials sector, high debt amplifies downside risk during revenue slumps, limits capacity for strategic investments, and can increase refinancing or covenant pressures.

Negative net profitability and weak operating margins

Negative EBIT and net margins point to structural cost or efficiency issues that prevent converting EBITDA into operating profits. Persistent unprofitability erodes retained earnings, pressures cash reserves and hampers investment, requiring sustained margin improvement to restore financial health.

ARO Granite Industries Limited Business Overview & Revenue Model

Company Description

Aro Granite Industries Limited engages in the manufacturing, processing, and selling of polished/flamed granite tiles and slabs primarily in India. The company offers natural stone granites slab and tiles; and engineered quartz stone slabs. It also exports its products to approximately 50 countries, including the United States, Canada, Europe, Japan, and the Far East and South Pacific countries. Aro Granite Industries Limited was incorporated in 1988 and is based in Hosur, India.

How the Company Makes Money

ARO Granite Industries Limited generates revenue primarily through the sale of its granite products, which include slabs, tiles, and customized stone solutions. The company's revenue model is driven by both domestic sales and significant export activities, with a substantial portion of its income coming from international markets. Key revenue streams include direct sales to distributors, retailers, and contractors in the construction and design industries. Additionally, AROGRANITE benefits from long-term partnerships with suppliers and clients, which facilitate steady demand for its products. The company also invests in marketing and branding efforts to enhance its market presence and attract new customers, further contributing to its revenue growth.

ARO Granite Industries Limited Financial Statement Overview

Summary

AROGRANITE faces challenges with declining revenues and profitability, as seen in the income statement. The balance sheet reveals a high leverage situation, which could be risky if profit margins do not improve. However, the company's cash flow remains robust, offering some cushion against operational downturns.

Income Statement

The income statement shows a decline in total revenue from prior years, with a significant drop in net income, resulting in a negative net profit margin for the latest period. Despite a positive EBITDA margin, the EBIT margin is negative, indicating operational challenges, possibly due to increased costs or inefficiencies.

Balance Sheet

The balance sheet reflects moderate financial stability with a consistent stockholders' equity. However, the debt-to-equity ratio suggests a high leverage, which poses a risk during periods of low profitability. The equity ratio is stable, showing a decent proportion of total assets financed by equity.

Cash Flow

The cash flow statement indicates strong free cash flow generation despite the company's recent net losses, demonstrating effective cash management. The operating cash flow to net income ratio is favorable, highlighting the company's ability to generate cash from its operations even during challenging times.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.13B	1.23B	1.55B	1.64B	2.25B	1.79B
Gross Profit	510.69M	531.97M	748.15M	291.19M	865.78M	713.34M
EBITDA	157.07M	159.63M	312.34M	196.01M	314.45M	244.28M
Net Income	-71.21M	-64.23M	13.14M	-57.88M	89.06M	60.48M
Balance Sheet
Total Assets	0.00	4.20B	4.45B	4.50B	4.51B	4.04B
Cash, Cash Equivalents and Short-Term Investments	58.80M	58.80M	63.18M	24.78M	34.36M	32.49M
Total Debt	0.00	1.60B	1.89B	2.05B	1.99B	1.68B
Total Liabilities	-1.86B	2.34B	2.53B	2.60B	2.55B	2.17B
Stockholders Equity	1.86B	1.86B	1.92B	1.91B	1.96B	1.88B
Cash Flow
Free Cash Flow	0.00	326.23M	348.83M	105.55M	-246.68M	-38.19M
Operating Cash Flow	0.00	330.13M	350.34M	139.57M	-181.49M	6.47M
Investing Cash Flow	0.00	2.17M	416.00K	-30.28M	-61.89M	-39.41M
Financing Cash Flow	0.00	-335.31M	-323.47M	-145.30M	239.37M	26.97M

ARO Granite Industries Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AROGRANITE, the sentiment is Neutral. The current price of 32.99 is above the 20-day moving average (MA) of 30.07, above the 50-day MA of 31.00, and below the 200-day MA of 35.76, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 34.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AROGRANITE.

ARO Granite Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AROGRANITE	46 Neutral	₹432.68M	-18.31	―	―	-21.28%	59.71%
MADHAV	46 Neutral	₹339.00M	-34.49	―	―	-15.13%	14.17%
ASTRON	44 Neutral	₹225.06M	-0.49	―	―	-98.56%	-96.41%
PEARLPOLY	44 Neutral	₹346.46M	-6.58	―	―	―	―
ORIENTPPR	43 Neutral	₹4.25B	-17.19	―	1.08%	-0.52%	29.48%