Aro Granite Industries Ltd Stock Research

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Aro Granite Industries Ltd Detail

Aro Granite Industries Limited is in portfolio of Subramanian P and Dilip Kumar Lakhi . He is one of the top investors in India. As the name suggest it is Granite Company. The product of the Company includes

  • Granite Slabs
  • Granite Tiles

The Company is based in Hosur Tamilnadu. This facility is 100% Export based Unit. Aro Granite exports products to different countries like North America, South America, Europe and Far East markets.

The Company has an annual installed capacity of 1,80,000 sq.mtrs. at Unit I with 4 Pedrini Block Cutters and 2 Pedrini Polishing Machines, 1 Resin Line, 1 Calibration Machine and 1 Chamfering Machine.

The Slab Plant at Unit II has an installed capacity of 3,90,000 Sq. Mtrs. per annum. In addition to this, the company has now setup a new Tiling Plant at Unit II with an installed capacity of 3,60,000 sq.mtrs. per annum.

Granite is lesser known Sector as of now. So lets see if investors are interested in this sector and how it has performed over the years on stock exchanges.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Aro Granite Industries Ltd Performance

Aro granite Stock Performance 2018
Aro granite Stock Performance 2018

The stock made debut on Stock Exchanges in year 2007. It made debut at 40 mark.After the IPO next six years were not good for the Company. It never managed to cross the IPO price during this time. The prices declined slowly at touched 20 mark near 2014.

The decline was slow and gradual meaning Company was unable to perform as per its potential showcased during IPO days. It picked up during recent bull run on Nifty and moved past 80 odd levels quickly. During last 4 years or so Company ha traded above 40 mark.

The dividend yield of Company is also good. At current market price it is giving away 2% dividend yield. This is good dividend rate if company maintains the same in near future.

Aro Granite Industries Ltd My Opinion

Granite is a niche sector as of now. The demand for Granite products (like Granite made temples and things have picked up recently). People have started using Granite in housing.

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There are no big company in this sector. In India Granite sector is largely unorganized one as of now. There are small companies operating in this sector. There will be gradual move from Unorganized sector to Organized one with time.

The more demand for Granite products and consolidation of the sector will help Companies grow. Note Aro Granite has all export oriented unit. So It can not sell in Indian market. The Company is solely dependent on export for revenue.

Personally I feel this sector should perform better in near future. But the company will have to focus on Indian market as well along with foreign market.

You can add it in your stock watch list and see how the company performs over the time. This is new company and it is early stages for this sector. You can also add other Companies listed in granite sector and have comparison of them. That will help you understand the sector better and pick the best one.

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