ARO Granite Industries Limited (AROGRANITE) AI Stock Analysis

• Market Cap: ₹378.68M
• Dividend Yield: N/A
• Average Volume (3M): 16.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -21.28%
• EPS Growth: 59.71%
• Country: IN
• Employees: 248
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): -1.94
• 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: ₹24.50 ▼(-25.74% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

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

Free Cash Flow

Strong free cash flow despite net losses gives durable financial flexibility to fund operations, service debt, and cover maintenance capex without immediate external financing. Over a multi-month horizon this cushion supports operational continuity and strategic choices while revenues recover.

Stable Equity Base

A consistent stockholders' equity and stable equity ratio provide a capital buffer that bolsters solvency and lender confidence. Over months this steadier capital structure supports access to financing, reduces immediate insolvency risk, and allows management more time to execute turnaround actions.

Positive EBITDA Margin

A positive EBITDA margin indicates core operations generate cash before depreciation, interest and taxes, pointing to underlying business viability. Over the medium term this operational cash generation enables targeted cost or efficiency measures to restore EBIT and net profitability.

Negative Factors

Revenue Decline

A roughly 31% revenue decline materially reduces scale and weakens fixed-cost absorption, eroding margins and competitive position. Over several months this contraction can make recovery harder, prolonging pressure on profitability and forcing difficult trade-offs on pricing or capacity.

High Leverage

High leverage raises interest and covenant risk and constrains financial flexibility, especially when earnings are weak. Over a 2-6 month horizon, elevated debt servicing requirements limit ability to invest or absorb shocks and increase refinancing and solvency risk if profitability doesn't rebound.

Negative EBIT & Net Margin

Negative EBIT and net margins point to operational inefficiencies or cost pressures beyond one-offs, limiting retained earnings and reinvestment capacity. Persisting operating losses over months elevate reliance on cash reserves or external funding and raise the risk profile despite positive cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 32.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AROGRANITE, the sentiment is Negative. The current price of 32.99 is above the 20-day moving average (MA) of 27.63, above the 50-day MA of 28.83, and below the 200-day MA of 34.73, indicating a bearish trend. The MACD of -1.05 indicates Positive momentum. The RSI at 29.14 is Positive, neither overbought nor oversold. The STOCH value of 16.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
ASTRON	47 Neutral	₹190.65M	-1.40	―	―	-98.56%	-96.41%
AROGRANITE	46 Neutral	₹378.68M	-4.01	―	―	-21.28%	59.71%
MADHAV	46 Neutral	₹311.62M	-19.39	―	―	-15.13%	14.17%
PEARLPOLY	44 Neutral	₹291.92M	-5.93	―	―	―	―
ORIENTPPR	43 Neutral	₹3.74B	-5.66	―	1.08%	-0.52%	29.48%