Solid Stone Company Reports Strong Q2 FY24-25 Performance Amid Long-Term Challenges

Feb 07 2025 06:53 PM IST
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Solid Stone Company, part of the Ceramics, Marble, Granite, and Sanitaryware sector, has recently experienced a change in evaluation. In Q2 FY24-25, it reported strong operating cash flow and net sales, but long-term challenges persist, including declining growth rates and a high Debt to EBITDA ratio, indicating financial strain.
Solid Stone Company, operating within the Ceramics, Marble, Granite, and Sanitaryware industry, has recently undergone an adjustment in evaluation. This revision reflects a range of underlying trends and performance indicators that merit attention.

In the latest quarter, Q2 FY24-25, Solid Stone Company reported notable figures, including an operating cash flow of Rs 4.55 crore and net sales reaching Rs 7.27 crore, which indicates significant growth. The company's PBDIT also peaked at Rs 1.07 crore during this period. Despite these positive metrics, the company has faced challenges over the longer term, with a five-year CAGR growth in net sales showing a decline of 9.42%.

The company's financial health is further characterized by a high Debt to EBITDA ratio of 6.25 times, suggesting a constrained ability to service its debt. Additionally, the Return on Equity has averaged at 1.84%, indicating limited profitability relative to shareholders' funds.

Overall, while Solid Stone Company has demonstrated some positive short-term performance, its long-term fundamentals present a more complex picture.

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