Asian Granito (ASIANTILES)

FairStock Score: 14/100 — RISKY

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

Key Financials

Strengths

• Low leverage: Debt/Equity of only 0.20
• Sales growth of 15.8% shows top-line momentum
• Piotroski F-Score of 7/9 indicates improving financial health
• Latest quarter profitable with sales of ₹424 Cr and net profit of ₹19 Cr
• P/B of 1.35 is modest in absolute terms

Concerns

• ROE of 2.82% and ROCE of 2.17% are far too low for a quality compounder
• P/E of 31.98 is expensive relative to current earnings power
• Profit growth of 543% is from a low base and unlikely to be sustainable
• Zero dividend yield and FairStock Score of 31/100 signal high risk

AI Analysis

At ₹76.34, Asian Granito has a market cap of ₹1,653 crore. The first thing I see is a low return on equity of 2.82% and a return on capital employed of just 2.17%. That tells me this business does not yet earn acceptable returns on the money shareholders and creditors have put in. A P/B of 1.35 against book value of ₹56.36 is not obviously expensive, but paying 1.35 times book for a business earning 2.82% on equity fails Graham's margin-of-safety test. The P/E of 31.98 is too rich unless the 543% profit growth is somehow durable. I cannot trust that figure as evidence of quality; it comes from a low base. The latest quarter shows sales of ₹424 crore and net profit of ₹19 crore. If annualised, that is around ₹76 crore, so the stock still trades at roughly 22 times forward earnings—hardly a bargain. Sales growth of 15.8% is decent, and the debt-equity ratio of 0.20 is reassuring. The Piotroski F-score of 7 does suggest recent fundamental improvement, which supports a turnaround thesis. But the FairStock score of 31 labels the stock risky, and I must agree. There is no dividend, so the investor depends entirely on capital appreciation. Ceramics is a competitive, low-differentiation, cyclical industry tied to real estate. Promoter holding of 38.8% is not insignificant, but I would like to see stronger alignment. I would watch whether this earnings recovery continues, whether returns on capital move toward respectable double digits, and whether the company can grow without taking on excessive debt. Until then, this is a speculative turnaround, not a compounder.

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