Stock below Rs 100: This small-cap company target Rs 6000 crore revenue; do you own it?

Currently the stock is trading at Rs 79.95 which is 7.14 per cent down from its 52 weeks high. The stock price has generated short-term gains of 24.84 per cent in 1 months while in the time span of 6 months company has accumulated 43.82 per cent gains.

A prominent player in Luxury Surfaces and Bath-ware Solutions, has announced an enhanced performance in Q2FY24. Net Sales witnessed a marginal yet positive increase of 1 per cent, reaching Rs 400.9 crore compared to Rs 397.8 crore in Q2 FY23. The company's EBITDA showed a remarkable upswing, surging by 2,311 per cent from a negative figure of Rs 0.9 crore in Q2 FY23 to Rs 19.9 crore in Q2 FY24. This substantial improvement is reflected in the EBITDA Margin, which jumped from -0.2 per cent to a positive 5 per cent, representing a significant increase of 520 basis points (bps). Net Profit also exhibited positive growth, narrowing the loss by 62 per cent from Rs 7.8 crore in Q2 FY23 to Rs 2.8 crore in Q2 FY24. The Net Profit Margin improved from -2.0 per cent to -0.7 per cent, marking a noteworthy enhancement of 126 bps.  

The H1 YoY EBITDA surged impressively by 558 per cent, reflecting robust operational efficiency and improved financial performance. Net profit demonstrated a substantial 50 per cent growth, showcasing enhanced profitability and effective cost management during the same period. 

AGL's exports reached Rs 51 crores in Q2FY24 and totaled Rs 93 crores for H1 FY24. The company has also completed a mega expansion plan at Morbi and ventured into a joint venture to establish a wall tiles manufacturing unit in Nepal. 

Management Commentary 

Asian Granito India Limited (AGL) Chairman and Managing Director, Mr. Kamlesh Patel, expressed satisfaction with the company's Q2 and H1 FY24 performance, AGL delivered resilient financial performance in Q2FY24, despite headwinds. The company completed the expansion of its GVT and sanitaryware plants at Morbi, and its joint venture Nepovit Ceramic Private Limited commenced operations in Nepal. AGL's wholly-owned subsidiary Future Ceramic Private Limited also started commercial operations of its GVT plant. The board approved the demerger scheme for AGL and its subsidiaries, which is expected to enhance operational efficiency and cost synergies. AGL is on track to achieve its revenue target of Rs. 6,000 crores through its Enhanced Strategic Integration Programme.  

Company Performance 

Currently the stock is trading at Rs 79.95 which is 7.14 per cent down from its 52-week high. The stock price has generated short-term gains of 24.84 per cent in 1 months while in the time span of 6 months company has accumulated 43.82 per cent gains. Year-to-date company has given returns of 54.70 per cent where the stock has disappointed to its shareholders with negative returns in a long term. The stock is currently valued at 79 per cent of its book value. 

About the Company 

Asian Granito India Limited (AGL) is India's leading luxury surfaces and bathware solutions brand, with a wide range of tiles, engineered marble and quartz, sanitaryware, and faucets. The company has over 6,000 employees and 14 manufacturing units, and exports to over 100 countries. AGL is committed to innovation and quality, and aims to strengthen its position as the leader in the Indian ceramic industry. 

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