ARO Granite Industries Limited (AROGRANITE) AI Stock Analysis

• Market Cap: ₹361.23M
• Dividend Yield: N/A
• Average Volume (3M): 16.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• 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: 48 Neutral
• Price Target: ₹23.00 ▼(-30.28% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by deteriorating profitability (negative margins) and high leverage risk, alongside clearly bearish technicals (price below key moving averages and negative MACD). Stronger free cash flow generation provides some offset, but losses (negative P/E) keep the valuation profile weak.

Positive Factors

Strong free cash flow

Consistent free cash flow despite reported losses provides durable liquidity to fund working capital, maintenance capex and selective investments without immediate reliance on equity issuance. Over 2-6 months this supports operations, potential deleveraging and flexibility to navigate cyclical headwinds.

Stable equity ratio / capital base

A stable equity ratio and consistent stockholders' equity create a structural capital buffer that cushions losses and preserves creditor confidence. This improves solvency metrics and gives the company scope to absorb short-term shocks or fund small strategic initiatives without immediate capital raises.

Positive EBITDA margin / cash conversion

A positive EBITDA margin shows core operations generate cash before depreciation and financing, indicating underlying operational viability. When paired with favorable operating-cash-flow metrics, this points to the business's ability to translate operations into cash and the potential for margin recovery if fixed or non-cash charges are managed.

Negative Factors

Material revenue decline

A roughly 31% drop in revenue signals significant loss of demand or market share, reducing economies of scale. Sustained top-line contraction raises per-unit costs, compresses gross margins and limits resource availability for investment or debt reduction, making durable recovery more challenging.

Negative profitability (net & EBIT)

Negative net profit and negative EBIT margins show that operating and non-operating costs exceed revenues. Persistent losses erode retained earnings, restrict internal funding for growth or capex, and raise dependency on external financing, impairing the firm's ability to rebuild sustainable profitability over months.

High leverage / debt risk

Elevated debt-to-equity increases interest and refinancing exposure, especially with weak profitability. High leverage reduces strategic flexibility, magnifies downside in adverse cycles, and can force asset sales or costly refinancing, constraining long-term operational and investment choices.

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

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ARO Granite Industries Limited Financial Statement Overview

Summary

Profitability is weak: revenue has declined, net income fell sharply, and the latest period shows a negative net profit margin with a negative EBIT margin. Balance sheet leverage is high (riskier in a low-profit environment), but cash flow remains relatively strong with solid free cash flow and favorable operating cash flow vs. net income.

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	1.04B	1.23B	1.55B	1.64B	2.25B	1.79B
Gross Profit	423.41M	531.97M	748.15M	291.19M	865.78M	713.34M
EBITDA	220.43M	159.63M	312.34M	196.01M	314.45M	244.28M
Net Income	-24.18M	-64.23M	13.14M	-57.88M	89.06M	60.48M
Balance Sheet
Total Assets	4.03B	4.20B	4.45B	4.50B	4.51B	4.04B
Cash, Cash Equivalents and Short-Term Investments	95.09M	58.80M	63.18M	24.78M	34.36M	32.49M
Total Debt	1.48B	1.60B	1.89B	2.05B	1.99B	1.68B
Total Liabilities	2.20B	2.34B	2.53B	2.60B	2.55B	2.17B
Stockholders Equity	1.83B	1.86B	1.92B	1.91B	1.96B	1.88B
Cash Flow
Free Cash Flow	157.53M	326.23M	348.83M	105.55M	-246.68M	-38.19M
Operating Cash Flow	157.89M	330.13M	350.34M	139.57M	-181.49M	6.47M
Investing Cash Flow	1.64M	2.17M	416.00K	-30.28M	-61.89M	-39.41M
Financing Cash Flow	-151.94M	-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 25.83, above the 50-day MA of 27.77, and below the 200-day MA of 34.29, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 22.39 is Positive, neither overbought nor oversold. The STOCH value of 0.76 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%
AROGRANITE	48 Neutral	₹361.23M	-4.01	―	―	-21.28%	59.71%
ASTRON	47 Neutral	₹182.28M	-1.40	―	―	-98.56%	-96.41%
MADHAV	46 Neutral	₹319.77M	-19.39	―	―	-15.13%	14.17%
ORIENTPPR	45 Neutral	₹3.51B	-5.66	―	1.08%	-0.52%	29.48%
PEARLPOLY	44 Neutral	₹278.79M	-5.93	―	―	―	―