This Small-Cap Stock Reports Consolidated Net Sales of Rs 360 Crore and a 955 per cent EBITDA Growth; Promoter Holding Rises, and a Rs 6,000 Crore Revenue Target!

The company posted a 955 per cent EBITDA growth in Q3FY25, increased promoter holding, expanded branding efforts, and announced a Rs 6,000 crore revenue target.

Asian Granito Ltd declared its quarterly result for Q3 FY25.

Asian Granito Ltd has reported a consolidated net loss of Rs 1 crore for Q3FY25, ended 31st December 2024, as compared to a net loss of Rs 8 crore in Q3FY24. Consolidated net sales for Q3FY25 stood at Rs 360 crore, as against Rs 371 crore in Q3FY24, due to softness in domestic demand and continued weakness in tile exports. EBITDA for Q3FY25 stood at Rs 16 crore, with an EBITDA margin of 4.41 per cent, compared to Rs 2 crore and an EBITDA margin of 0.41 per cent in Q3FY24, reflecting a year-on-year increase of 955 per cent, driven by higher realizations and a marginal reduction in gas prices. Exports for Q3FY25 were reported at Rs 79 crore, marking a year-on-year rise of 22 per cent from Rs 60 crore in Q3FY24, primarily due to increased quartz exports.

Commenting on the results, Mr. Kamlesh Patel, Chairman and Managing Director, stated, "Strategic initiatives such as the AGL demerger, expanding our retail presence and showrooms, and appointing Ranbir Kapoor as our brand ambassador reflect our strong commitment to growth and our ambition to become a global brand. The company is committed to a long-term vision of achieving a total revenue target of Rs 6,000 crore. Despite challenges such as fluctuations in raw material costs, export policies, and fierce competition impacting both business and margins, we have delivered strong results for Q3 and the nine months of FY25. As a key player in the Indian ceramic industry, we aim to increase market share through continuous product development, new designs, and advanced manufacturing technology to enhance customer alignment and growth."

The company has reported a standalone net profit of Rs 2 crore for Q3FY25, compared to Rs 6 crore in Q3FY24. Standalone net sales for Q3FY25 declined by 8 per cent to Rs 295 crore from Rs 320 crore in Q3FY24, due to lower price realization. EBITDA for Q3FY25 stood at Rs 4 crore, with an EBITDA margin of 1.36 per cent, compared to Rs 5 crore and an EBITDA margin of 1.63 per cent in Q3FY24.

Composite Scheme of Arrangement involving Demerger, Slump Sale, as well as Amalgamation between Asian Granito India Ltd and other entities, is approved with the requisite majority by Shareholders and Creditors

During Q3FY25, the company’s board approved the allotment of 2.03 crore equity shares upon the conversion of an equal number of warrants at Rs 48.15 per share. Following this conversion, the promoter group’s holding increased to 33.52 per cent as of December 2024.

The company launched its third TV commercial under the "Premium ka Pappa" campaign featuring Ranbir Kapoor, with the tagline: "Jo Ranbir Ko Shaadi Mein Nachate Hain, Ghar Mein AGL Tiles Lagate Hain." The campaign has garnered over 17 million views on YouTube. Additionally, the company signed renowned Bollywood actress Vaani Kapoor as the brand ambassador for its Bonzer7 brand.

Recently, the company introduced "AGL Tile Guru," a first-of-its-kind initiative in the tile industry aimed at educating and empowering stakeholders.

Incorporated in 1995, Asian Granito manufactures and trades Tiles, Marble and allied products

Asian Granito Ltd currently has a market capitalization of Rs 860 crore, with its stock priced at Rs 58.5. The stock has a 52-week high and low of Rs 98.2 and Rs 50.8, respectively. It trades at a price-to-earnings (P/E) ratio of 496, whereas the industry price-to-earnings (P/E) ratio is 39.4x, indicating stock trading at a premium. Stock is trading at 0.68 times its book value

Investors should keep a close eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.