Elegant Marbles (526705)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Price of ₹265.45 against book value of ₹557.14 gives a P/B of 0.48, offering a margin of safety if book value is genuine.
• Sales growth of 111.42% and profit growth of 92.98% show strong recent momentum, with a PEG of 0.15 indicating cheapness on current growth.
• Piotroski F-score of 7/9 points to improving financial health and lower near-term distress risk.
• Market cap of ₹79 Cr with P/E of 15.13 is not excessive for a company showing recovery.

Concerns

• ROE of 2.22% and ROCE of 3.62% are very low; the business earns little on its capital, which may justify the deep discount to book value.
• Latest quarter profit of ₹1 Cr on sales of ₹11 Cr is thin, making annualised earnings power modest relative to the market cap.
• High growth rates come from a small, cyclical base; granites and marbles depend on real estate and infrastructure cycles that can reverse quickly.
• Debt/Equity and promoter holding are N/A, so leverage and insider ownership cannot be assessed.

AI Analysis

At ₹265.45, Elegant Marbles sells at 48 paise to a rupee of book value. That is precisely the kind of statistical bargain Graham would ask me to examine. But Mr. Market is not always wrong. The company earns a paltry 2.22% ROE and 3.62% ROCE. If the assets truly produced good returns, the market would not hand me this discount. So I must ask: are the assets worth more than the earnings stream? The recent figures do offer hope. Sales grew 111.42% and profits 92.98%. At a P/E of 15.13, the trailing growth makes the PEG ratio look absurdly low at 0.15. But I am wary of extrapolating a small recovery into a permanent trend. Latest quarter sales of ₹11 Cr and net profit of ₹1 Cr show the company remains small—annualised, that's roughly ₹4 Cr of profit against a ₹79 Cr market cap. The F-score of 7/9 suggests improving fundamentals, and that is encouraging. Still, this is a capital-intensive, cyclical business in granites and marbles, so high growth can quickly reverse if real estate and infrastructure spending soften. The lack of debt/equity and promoter holding data is a red flag for an investor who wants to know who owns the business and how leveraged it is. I cannot simply rely on the low P/B ratio. In Graham's world, a cheap stock with low returns and poor disclosure is an asset play, not a guaranteed bargain. I would need proof that management is allocating capital sensibly and that book value is real and liquid. Until then, I will keep it on the watchlist, not the checklist.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer