ARO Granite Industries Limited (AROGRANITE) AI Stock Analysis

ARO Granite Industries Limited

(NSE:AROGRANITE)

Select Model

Rating:40Underperform

Price Target:INR 20.50▼(-6.86% Downside)

Action:downgraded

Date:08/20/26

The overall score is driven primarily by deteriorating fundamentals, including sharp revenue decline, sustained losses, and weaker cash generation, with bearish technical trends and an uncertain valuation profile reinforcing a cautious stance, slightly tempered by improving leverage and a still-resilient equity base.

Positive Factors

Debt Reduction and Equity BaseDebt reduction has improved the company’s balance-sheet position, while a still-material equity base provides some support against financial stress. Although leverage remains meaningful, lower borrowings can reduce future financing pressure and preserve more flexibility for operating needs.

Negative Factors

Persistent Revenue ContractionA sharp annual revenue decline combined with negative growth across multiple years points to sustained pressure on demand or sales execution rather than a single isolated fluctuation. Continued contraction can reduce scale, weaken operating leverage, and make recovery in profitability more difficult.

ARO Granite Industries Limited (AROGRANITE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 405.45M
Dividend Yield: ―
Average Volume (3M): 7,152
Price to Earnings (P/E): -1.7
Beta (1Y): 1.78
Revenue Growth: -40.39%
EPS Growth: -171.42%
Country: India
Employees: 150
Sector: General
Sector Strength: 55
Industry: Construction Materials

ARO Granite Industries Limited Business Overview & Revenue Model

Company Description

Aro Granite Industries Limited, established in 1988 and headquartered in Hosur, India, specializes in the production and distribution of finished granite products. The company primarily focuses on the Indian market, crafting both polished and flamed...

How the Company Makes Money

ARO Granite Industries Limited generates revenue primarily by selling processed granite and related natural-stone products to customers in the construction and building-materials market. Its earnings are driven by (i) product sales volume (e.g., gran...

ARO Granite Industries Limited Financial Statement Overview

Summary

Financial performance is weak, with sharply declining revenue, consecutive net losses, negative EBIT, shrinking assets, and recently compressed, volatile cash flows, partially offset by improving leverage and a still-solid equity base.

Income Statement

22Negative

Balance Sheet

45Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	671.03M	735.16M	1.23B	1.55B	1.64B	2.25B
Gross Profit	53.37M	147.65M	531.97M	748.15M	291.19M	865.78M
EBITDA	46.21M	133.19M	159.63M	312.34M	196.01M	314.45M
Net Income	-193.28M	-118.17M	-64.23M	13.14M	-57.88M	89.06M
Balance Sheet
Total Assets	0	3.94B	4.20B	4.45B	4.50B	4.51B
Cash, Cash Equivalents and Short-Term Investments	94.86M	128.82M	58.80M	63.18M	24.78M	34.36M
Total Debt	0	1.52B	1.60B	1.89B	2.05B	1.99B
Total Liabilities	-1.74B	2.20B	2.34B	2.53B	2.60B	2.55B
Stockholders Equity	1.74B	1.74B	1.86B	1.92B	1.91B	1.96B
Cash Flow
Free Cash Flow	157.53M	20.19M	326.23M	348.83M	105.55M	-246.68M
Operating Cash Flow	157.89M	21.56M	330.13M	350.34M	139.57M	-181.49M
Investing Cash Flow	1.64M	23.98M	2.17M	416.00K	-30.28M	-61.89M
Financing Cash Flow	-151.94M	-4.30M	-335.31M	-323.47M	-145.30M	239.37M

ARO Granite Industries Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price22.01

Price Trends

50DMA23.49Negative

100DMA24.38Negative

200DMA25.30Negative

Market Momentum

MACD-0.28Positive

RSI43.61Neutral

STOCH27.77Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AROGRANITE, the sentiment is Negative. The current price of 22.01 is below the 20-day moving average (MA) of 22.91, below the 50-day MA of 23.49, and below the 200-day MA of 25.30, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 27.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AROGRANITE.

ARO Granite Industries Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AROGRANITE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ORIENTALTL	60Neutral	INR 324.17M	10.68	―	―	23.37%	-68.54%
IN:POKARNA	60Neutral	INR 19.89B	20.93	―	0.09%	-35.05%	-48.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ASIANTILES	54Neutral	INR 13.59B	60.37	―	―	18.50%	-67.27%
IN:LEXUS	40Underperform	INR 221.63M	-9.78	―	―	-32.58%	-233.34%
IN:MADHAV	40Underperform	INR 272.88M	-119.38	―	―	7.43%	72.12%
IN:AROGRANITE	40Underperform	INR 336.75M	-1.72	―	―	-40.39%	-171.42%

* General Sector Average

Performance Comparison

IN:AROGRANITE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AROGRANITE	ARO Granite Industries Limited	22.01	-13.79	-38.52%
IN:ASIANTILES	Asian Granito India Limited	45.85	-20.06	-30.44%
IN:LEXUS	Lexus Granito (India) Ltd.	10.66	-18.39	-63.30%
IN:MADHAV	Madhav Marbles & Granites Ltd.	30.50	-10.49	-25.59%
IN:ORIENTALTL	Oriental Trimex Limited	4.41	-5.61	-55.99%
IN:POKARNA	Pokarna Limited	641.40	-267.88	-29.46%

ARO Granite Industries Limited Corporate Events

ARO Granite launches postal ballot, highlights regulatory compliance

Sep 17, 2026

ARO Granite Industries Limited has notified the stock exchanges that it has dispatched a postal ballot notice to its members and has published the related advertisement in newspapers, in line with SEBI’s listing and disclosure regulations. The...

Aro Granite Seeks Shareholder Nod for Jaipur Unit Sale and US Related-Party Deal

Sep 16, 2026

Aro Granite Industries Limited has launched a postal ballot process to seek shareholder approval via remote e‑voting on two key resolutions affecting its asset base and group structure. The company is proposing a slump sale of its Jaipur unit u...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 20, 2026

ARO Granite Industries Limited AI Stock Analysis