Pokarna Limited (POKARNA) AI Stock Analysis

• Market Cap: ₹25.71B
• Dividend Yield: 0.07%
• Average Volume (3M): 11.04K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 2.39
• 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: 78 Outperform
• Price Target: ₹945.00 ▲(11.68% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong financial performance (rapid revenue growth and improved margins) and supportive technicals (price above major moving averages with positive MACD). The rating is moderated by valuation risk (P/E ~30), signs of stretched momentum (high Stochastics and elevated RSI), and cash-flow softness alongside a rising debt trend.

Positive Factors

Revenue and Margin Expansion

Sustained double-digit revenue growth with materially higher gross and net margins indicates stronger product demand and improved pricing or cost control. This combination supports durable cash generation and reinvestment capacity, enhancing the firm's ability to scale operations and preserve profitability over months.

Solid Capital Structure

Prudent leverage and a healthy equity ratio provide financial flexibility during industry cycles. A 24.1% ROE reflects efficient use of shareholder capital to produce returns, supporting sustainable investment in production capacity and cushioning against demand slowdowns over the medium term.

Strong Operating Cash Conversion

High operating cash conversion means reported earnings translate into cash available for working capital, capex and debt servicing. This underlying cash-generative profile is a durable strength given the business' working-capital intensity and supports funding of growth without immediate reliance on external financing.

Negative Factors

Declining Free Cash Flow

A falling free cash flow trend reduces internal funding for capex, dividends or debt reduction. In a capital- and inventory-intensive stone business, weaker FCF constrains strategic flexibility, increases reliance on external capital, and can magnify stress if margins or demand soften over the coming months.

Rising Total Debt

Growing absolute debt levels, even with moderate leverage ratios today, elevate interest and refinancing risk. Coupled with working-capital needs and weaker FCF, higher debt can pressure liquidity and limit the company's ability to invest or absorb demand shocks in the medium term.

Decline in EBIT Margin

A sharp drop in EBIT margin signals rising operating costs or reduced operational efficiency. If persistent, margin compression undermines the business's capacity to fund growth and maintain returns, increasing vulnerability to input cost inflation or lower pricing in the construction and interiors markets.

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 makes money mainly by selling stone surfaces and related products, with revenue driven by two principal streams: (1) Engineered stone (quartz surfaces): The company manufactures quartz slabs/surfaces and sells them to customers such as distributors, fabricators, and other channel partners who supply countertops and interior-surface applications. Earnings in this segment are influenced by manufacturing volumes and realizations, product mix (designs/colors/thickness), export demand, and the effectiveness of its distribution/channel relationships in end markets. (2) Natural stone (granite) business: The company generates revenue from quarrying and processing granite and selling blocks, slabs, and processed granite products to domestic and international buyers. This stream depends on quarry output/availability, processing capacity utilization, pricing, and demand in construction and interior markets. Across both streams, profitability is typically affected by raw material and quarrying costs, energy and freight costs, currency movements for export sales, and working-capital intensity inherent in inventory and receivables management. Specific significant partnerships or customer names are not available from the provided context; if required, they are null.

Pokarna Limited Financial Statement Overview

Summary

Strong revenue growth (+35.28% from 2024 to 2025) 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 total debt over time, and weakening free cash flow trends despite solid operating cash conversion (operating cash flow to net income of 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.76B	9.30B	6.88B	7.28B	6.50B	2.95B
Gross Profit	4.95B	4.81B	4.35B	4.23B	3.57B	1.77B
EBITDA	2.82B	3.47B	2.21B	1.81B	1.77B	882.40M
Net Income	1.44B	1.88B	873.63M	658.11M	783.00M	282.89M
Balance Sheet
Total Assets	13.05B	14.03B	12.16B	11.04B	11.72B	10.03B
Cash, Cash Equivalents and Short-Term Investments	1.26B	793.15M	688.13M	195.00M	231.65M	121.05M
Total Debt	3.05B	3.70B	4.01B	4.59B	5.15B	3.12B
Total Liabilities	4.94B	6.25B	6.23B	5.97B	7.29B	6.37B
Stockholders Equity	8.11B	7.78B	5.92B	5.07B	4.43B	3.66B
Cash Flow
Free Cash Flow	635.41M	622.66M	1.46B	1.03B	-1.49B	107.03M
Operating Cash Flow	880.75M	1.60B	1.88B	1.36B	686.13M	983.07M
Investing Cash Flow	-232.09M	-952.82M	-377.81M	-316.43M	-2.14B	-860.00M
Financing Cash Flow	-747.41M	-682.47M	-1.08B	-1.15B	1.61B	-125.04M

Pokarna Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 846.20
• 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:POKARNA, the sentiment is Negative. The current price of 846.2 is below the 20-day moving average (MA) of 892.52, below the 50-day MA of 886.53, and below the 200-day MA of 904.80, indicating a bearish trend. The MACD of -23.84 indicates Positive momentum. The RSI at 37.91 is Neutral, neither overbought nor oversold. The STOCH value of 20.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:POKARNA.

Pokarna Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POKARNA	78 Outperform	₹25.71B	31.58	―	0.07%	0.69%	25.55%
MANINDS	78 Outperform	₹27.97B	13.17	―	―	10.26%	46.49%
KSL	76 Outperform	₹28.55B	13.58	―	1.36%	-0.46%	4.85%
VSSL	75 Outperform	₹22.64B	20.43	―	1.03%	-1.47%	-15.20%
RAMRAT	64 Neutral	₹28.66B	22.96	―	0.39%	19.75%	13.42%
SUNFLAG	62 Neutral	₹39.28B	20.39	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.