Pokarna Limited (POKARNA) AI Stock Analysis

• Market Cap: ₹29.64B
• Dividend Yield: 0.07%
• Average Volume (3M): 11.04K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 2.40
• Revenue Growth: 0.69%
• EPS Growth: 25.55%
• Country: IN
• Employees: 198
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 6.57
• Shares Outstanding: 31,004,000
• 10 Day Avg. Volume: 12,734
• 30 Day Avg. Volume: 11,042
• PEG Ratio: 0.18
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 4.06
• P/FCF Ratio: 60.70
• 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: 73 Outperform
• Price Target: ₹970.00 ▲(14.63% Upside)

The score is driven primarily by strong financial performance (rapid revenue growth and improved margins) and supported by reasonable valuation with a high dividend yield. Technical signals are mixed—near-term strength versus a negative MACD and price still below the 200-day average—reducing the overall score.

Positive Factors

Strong revenue growth

A 35% year-over-year revenue rise signals durable demand and successful distribution across domestic and export markets. Sustained top-line momentum supports scale economics, product investment and channel strengthening, improving long-term competitive positioning.

High margins and ROE

Elevated gross and net margins alongside a 24% ROE indicate durable pricing power and capital efficiency in both engineered and natural stone segments. These metrics support reinvestment capacity and suggest the business can sustain attractive profitability over multiple cycles.

Solid capital structure

A sub-0.5 debt-to-equity and >55% equity ratio reflect prudent leverage and a resilient balance sheet. This structural strength provides financial flexibility for capital expenditures, capacity expansion or to absorb demand shocks without forcing distress sales or urgent refinancing.

Negative Factors

Declining free cash flow

Falling free cash flow reduces internal funding for capex, working capital and debt repayment, increasing reliance on external financing. For a working-capital intensive stones business, sustained FCF weakness can constrain growth investments and raise liquidity risk over months.

Material drop in EBIT margin

A steep EBIT margin decline suggests rising operating costs or lower operational efficiency despite higher gross margins. If persistent, this erodes operating leverage, limits ability to translate revenue growth into sustainable profit, and pressures long-term cash generation.

Rising total debt levels

An upward trend in total debt increases financial leverage and interest obligations, reducing headroom for cyclical downturns. Combined with weakening free cash flow, higher debt magnifies refinancing and liquidity risk, potentially limiting strategic investments and margin resilience.

Pokarna Limited Business Overview & Revenue Model

Company Description

Pokarna Limited engages in quarrying, manufacturing, processing, and selling granites. It offers granite products in various colors, such as acacia, black galaxy, coffee brown, flash blue, Pokarna green, sapphire blue, seaweed green, silver pearl, and Vizag blue; and manufactures and sells quartz surfaces under the Quantra brand. The company also provides random slabs and tiles, as well as cut-to-size products. In addition, it manufactures and retails apparel under the Stanza brand. The company also exports its products to approximately 12 countries across Europe, the Middle East, and North America. Pokarna Limited was incorporated in 1991 and is headquartered in Secunderabad, India.

How the Company Makes Money

Pokarna Limited generates revenue through several key streams, primarily from the sale of granite and engineered stone products. The company sells its products to both domestic and international clients, with significant exports contributing to its earnings. Revenue is bolstered by strategic partnerships with distributors and retailers across various regions, enhancing market reach. Additionally, Pokarna's focus on high-quality products and customization options allows it to command premium pricing, further increasing profitability. The company also explores opportunities in the real estate and construction sectors, leveraging its expertise in stone products to secure contracts and projects that provide additional revenue.

Pokarna Limited Financial Statement Overview

Summary

Strong revenue growth (+35.28% YoY) and improved profitability (gross margin 51.68%, net margin 20.16%) support a high score. This is tempered by a notable EBIT margin decline (51.20% to 30.27%), rising debt over time, and weakening free cash flow growth despite solid operating cash conversion (OCF/net income 0.85).

Income Statement

Pokarna Limited shows impressive revenue growth with a 35.28% increase from 2024 to 2025, indicating strong market performance. Gross profit margin improved to 51.68%, and net profit margin rose to 20.16%, showcasing effective cost management and profitability. However, a decline in EBIT margin from 51.20% in 2024 to 30.27% in 2025 suggests increased operational costs or reduced efficiency.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.48, indicating prudent leverage management. The equity ratio of 55.45% suggests a solid capital structure. Return on Equity (ROE) stands strong at 24.10%, reflecting efficient utilization of shareholders' equity. However, the total debt has increased over the years, which could pose a risk if not managed carefully.

Cash Flow

Pokarna's free cash flow growth rate shows a decline from 2024 to 2025, which may impact future investments or debt repayments. The operating cash flow to net income ratio of 0.85 indicates strong cash generation capability relative to net income. However, the free cash flow to net income ratio has decreased, suggesting lower cash availability relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.09B	9.30B	6.88B	7.28B	6.50B	2.95B
Gross Profit	5.74B	4.81B	4.35B	4.23B	3.57B	1.77B
EBITDA	3.39B	3.47B	2.21B	1.81B	1.77B	882.40M
Net Income	1.83B	1.88B	873.63M	658.11M	783.00M	282.89M
Balance Sheet
Total Assets	0.00	14.03B	12.16B	11.04B	11.72B	10.03B
Cash, Cash Equivalents and Short-Term Investments	1.23B	793.15M	688.13M	195.00M	231.65M	121.05M
Total Debt	0.00	3.70B	4.01B	4.59B	5.15B	3.12B
Total Liabilities	-7.78B	6.25B	6.23B	5.97B	7.29B	6.37B
Stockholders Equity	7.78B	7.78B	5.92B	5.07B	4.43B	3.66B
Cash Flow
Free Cash Flow	0.00	622.66M	1.46B	1.03B	-1.49B	107.03M
Operating Cash Flow	0.00	1.60B	1.88B	1.36B	686.13M	983.07M
Investing Cash Flow	0.00	-952.82M	-377.81M	-316.43M	-2.14B	-860.00M
Financing Cash Flow	0.00	-682.47M	-1.08B	-1.15B	1.61B	-125.04M

Pokarna Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 846.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POKARNA, the sentiment is Positive. The current price of 846.2 is above the 20-day moving average (MA) of 782.22, above the 50-day MA of 823.88, and below the 200-day MA of 906.39, indicating a bullish trend. The MACD of 27.33 indicates Negative momentum. The RSI at 80.13 is Negative, neither overbought nor oversold. The STOCH value of 92.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:POKARNA.

Pokarna Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSL	76 Outperform	₹34.07B	12.79	―	1.36%	-0.46%	4.85%
VSSL	75 Outperform	₹24.80B	21.49	―	1.03%	-1.47%	-15.20%
POKARNA	73 Outperform	₹29.64B	26.03	―	0.07%	0.69%	25.55%
MANINDS	64 Neutral	₹27.34B	14.02	―	―	10.26%	46.49%
SUNFLAG	62 Neutral	₹45.10B	22.38	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RAMRAT	60 Neutral	₹27.64B	38.44	―	0.39%	19.75%	13.42%

Pokarna Limited Corporate Events

Pokarna’s Independent Director Jayshree Sanghani Steps Down After Completion of Tenure

Pokarna Limited has announced that independent director Mrs. Jayshree Rajesh Sanghani has completed her five-year term on the board and ceased to be a director with effect from the close of business on 23 December 2025. The change, disclosed under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, represents a routine board refresh based on tenure completion, and the company has indicated that the cessation is purely due to the end of her appointed term, with no additional relationships or issues disclosed in connection with her departure.

Pokarna Limited Announces Q2 Financial Results and Committee Restructuring

Pokarna Limited’s Board of Directors has approved the unaudited standalone and consolidated financial results for the second quarter ending September 30, 2025. Additionally, the company has reconstituted its Nomination and Remuneration Committee and Corporate Social Responsibility Committee, reflecting a strategic shift in its governance structure. These developments are significant for stakeholders as they indicate a focus on financial transparency and enhanced corporate governance.