The shares of the leading tiles manufacturer gained up to 11 percent after the company entered into a Joint Venture Agreement to acquire shares of UK-based companies.
With a market capitalization of Rs 938.55 crore, the shares of Asian Granito India Ltd were trading at Rs 74.05 per share, increasing around 6.27 percent as compared to the previous closing price of Rs 69.68 apiece.
Reason for Rise:-
The shares of the company have seen bullish movement after Asian Granito India Ltd entered into a Joint Venture Agreement (“JVA”) with Shudh Investments Limited and Klyn Stone Limited of the UK to acquire shares of Klyn AGL Limited, A Joint Venture Company (“JVC”) incorporated in England & Wales to do trading business of Large Porcelain Slabs, all type of tiles and Quartz products.
Financial performance:-
Examine the company’s financial condition, revenue dipped by 4 percent from Rs 400.93 crore in Q2FY24 to Rs 383.68 crore in Q2FY25, and during the same time frame, net loss turned into from a loss of Rs 2.80 crore to a profit of Rs 4.69 crore.
Strategic Initiatives & expansion Plan:-
The company is focusing on expanding its production capacity and retail presence, including plans for new showrooms and a significant expansion in Morbi, Gujarat.
The company operates 11 manufacturing plants in Gujarat with a total capacity of 54.5 million sq. mt. annually, producing 29.94 million sq. mt. in FY24. Products include walls, floors, vitrified tiles, engineered marble, quartz stone, and sanitaryware, with daily outputs across various plants.
Overseas JV:-
The firm engaged in a Joint Venture Agreement with many persons in Nepal and established a new Joint Venture firm, Nepovit Ceramic Pvt Ltd. It was done to establish a wall tile production business in Nepal, for which the corporation made early expenditures.
Revenue Segment;-
In FY24, AGL launched its “Premium ka Pappa” campaign featuring Ranbir Kapoor, showcasing luxury living. Revenue comprised 99% of product sales, with exports at 15%. Segment-wise, tiles contributed 87%. Sales split: West 42%, North 26%, South 21%, East 12%; retail 72%, institutional 20%, government 9%.
Company Profile:-
AGL is India’s fourth-largest listed ceramic tiles firm. It manufactures and markets a diverse variety of goods, including floor tiles, wall tiles, parking tiles, glazed and polished vitrified tiles, double charge tiles, countertops, quartz and marble surfaces, sanitaryware, bathware, CP fittings, faucets, and construction chemicals.
Written by:- Abhishek Singh
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