Murudeshwar Ceramics Limited (MURUDCERA) AI Stock Analysis

• Market Cap: ₹2.08B
• Dividend Yield: 1.44%
• Average Volume (3M): 6.32K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.58
• Revenue Growth: 10.18%
• EPS Growth: 28.03%
• Country: IN
• Employees: 302
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 0.53
• Shares Outstanding: 60,545,260
• 10 Day Avg. Volume: 7,104
• 30 Day Avg. Volume: 6,320
• PEG Ratio: 0.21
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.94
• P/FCF Ratio: -18.95
• 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: 56 Neutral
• Price Target: ₹35.00 ▼(-0.77% Downside)

Murudeshwar Ceramics Limited's overall stock score is primarily influenced by its solid financial performance, which shows growth potential but is tempered by rising debt and cash flow instability. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and approaching oversold conditions. Valuation concerns arise from a relatively high P/E ratio, suggesting the stock may be overvalued despite a modest dividend yield.

Positive Factors

Sustained Revenue Growth

Murudeshwar Ceramics has delivered a multi-year revenue expansion (noted growth from 2021–2025), indicating durable demand for its ceramic product mix and distribution reach. Sustained top-line growth supports scale benefits, better fixed-cost absorption and long-term market position in building materials.

Improving Profitability Metrics

Gross margins consistently above 20% and improving EBITDA show the company is enhancing operational efficiency and product mix. Persistent margin improvement underpins lasting cash generation capacity and resilience against input-cost cycles, supporting reinvestment and competitive pricing flexibility.

Healthy Equity Base

A strong equity ratio (>60%) and only moderate leverage provide financial flexibility for Murudeshwar Ceramics. This capital structure supports funding of capex or working capital without immediate refinancing pressure, helping sustain operations and growth initiatives over the medium term.

Negative Factors

Rising Total Debt

While leverage is moderate today, the trend of rising total debt raises structural risk: higher interest and principal obligations can squeeze cash available for reinvestment and dividends, and amplify vulnerability to cyclical downturns in construction demand if not actively managed.

Volatile Free Cash Flow

Significant and inconsistent free cash flow in recent periods signals uneven cash conversion despite positive operating cash flow. Persistent FCF volatility can constrain capex, debt paydown and strategic investments, reducing the company's ability to capitalize on growth opportunities reliably.

Low Net Margin & EBIT Volatility

Although gross margins are solid, low net margins and volatile EBIT indicate sensitivity to costs, pricing or operational swings. This structural margin pressure limits retained earnings for growth and increases earnings volatility, making long-term profitability less predictable.

Murudeshwar Ceramics Limited Business Overview & Revenue Model

Company Description

Murudeshwar Ceramics Ltd. manufactures and trades in ceramic and vitrified floor and wall tiles in India, the Americas, South America, Europe, and internationally. It offers wall tiles, such as bathroom, kitchen, and outdoor tiles; and floor tiles, such as glazed and polished glazed vitrified, double charge, soluble salt, full body, and exteriors tiles, as well as wooden strips under the Naveen Ceramic Tiles and Naveen Diamontile brand names. The company was incorporated in 1983 and is based in Bengaluru, India.

How the Company Makes Money

Murudeshwar Ceramics Limited generates revenue primarily through the sale of ceramic tiles and sanitary ware products. The company has a well-defined revenue model that includes direct sales to wholesalers, distributors, and retailers, as well as online sales through its e-commerce platform. Key revenue streams include bulk orders from construction companies and developers, retail sales in home improvement stores, and exports to international markets. Additionally, strategic partnerships with architects and interior designers enhance its market reach and brand visibility. Factors contributing to its earnings include a growing demand for high-quality ceramics in the construction industry, effective marketing strategies, and a focus on product innovation to meet changing consumer preferences.

Murudeshwar Ceramics Limited Financial Statement Overview

Summary

Murudeshwar Ceramics Limited demonstrates a solid growth trend in revenue with consistent profitability improvements. The balance sheet remains strong with a healthy equity base, though rising debt levels could be a concern if not managed effectively. Cash flow fluctuations highlight the need for strategic capital expenditure management. Overall, the company exhibits potential for growth but needs to address leverage and cash flow stability.

Income Statement

Murudeshwar Ceramics Limited has shown a commendable growth trajectory in total revenue over the years, with a notable increase from 2021 to 2025. The gross profit margin and net profit margin indicate profitability, with gross profit margin consistently above 20%. However, the net profit margin, though improved, remains relatively low. The positive trajectory in revenue growth rate and EBITDA margin reflects operational efficiency improvements, although EBIT margin shows some volatility.

Balance Sheet

The balance sheet reflects a stable equity position with a strong equity ratio above 60%. A moderate debt-to-equity ratio indicates managed financial leverage. However, the increasing total debt over the years poses potential risk. Return on Equity (ROE) has shown improvement, suggesting better utilization of equity, although it remains modest.

Cash Flow

Cash flow analysis shows fluctuations in free cash flow with significant negative values in recent years. Although operating cash flow remains positive, indicating core business strength, the free cash flow to net income ratio reflects inconsistency. The company needs to address capital expenditures to stabilize free cash flow trends.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.06B	2.03B	1.86B	1.72B	1.23B	804.20M
Gross Profit	1.20B	430.48M	1.30B	1.27B	853.42M	472.62M
EBITDA	392.94M	395.05M	331.01M	318.32M	253.88M	78.00M
Net Income	99.34M	98.40M	51.28M	68.58M	21.47M	-118.75M
Balance Sheet
Total Assets	0.00	5.70B	5.48B	5.41B	4.76B	4.72B
Cash, Cash Equivalents and Short-Term Investments	6.79M	24.43M	12.49M	17.38M	60.47M	34.04M
Total Debt	0.00	1.08B	1.23B	1.20B	911.97M	911.25M
Total Liabilities	-3.72B	1.98B	1.83B	1.87B	1.36B	1.39B
Stockholders Equity	3.72B	3.72B	3.66B	3.54B	3.40B	3.33B
Cash Flow
Free Cash Flow	0.00	-100.87M	213.88M	-397.12M	137.78M	-78.75M
Operating Cash Flow	0.00	192.52M	309.58M	426.59M	231.41M	4.90M
Investing Cash Flow	0.00	-250.54M	-50.37M	-816.58M	-129.23M	-58.01M
Financing Cash Flow	0.00	-61.45M	-132.69M	346.90M	-75.76M	54.44M

Murudeshwar Ceramics Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.27
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MURUDCERA, the sentiment is Positive. The current price of 35.27 is above the 20-day moving average (MA) of 33.28, above the 50-day MA of 34.25, and below the 200-day MA of 39.77, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 73.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MURUDCERA.

Murudeshwar Ceramics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEARDSELL	65 Neutral	₹1.46B	11.49	―	0.33%	8.25%	13.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MURUDCERA	56 Neutral	₹2.08B	20.64	―	1.44%	10.18%	28.03%
KAKATCEM	53 Neutral	₹951.91M	-3.50	―	2.30%	-32.19%	-1097.08%
APCL	51 Neutral	₹4.24B	-10.12	―	―	-3.03%	27.30%
REGENCERAM	49 Neutral	₹1.17B	81.34	―	―	574.56%	―
PRAKASHSTL	43 Neutral	₹827.75M	59.05	―	―	-6.37%	-96.15%