Associated Stone Industries Kotah Ltd.) – Fundamental Analysis

Equity Research Report: ASI Industries Ltd. (Formerly Associated Stone Industries Kotah Ltd.)

Date: January 28, 2026

Current Market Price (CMP): ₹25.27 (NSE/BSE)

Market Cap: ~₹228 Cr

Sector: Minerals & Mining / Construction Raw Materials

1️⃣ Business Model & Work

Company Overview:

ASI Industries Ltd. duniya ki sabse badi Kotah Stone mining company hai. Company Rajasthan ke Ramganjmandi (Kota) me 10 sq. km. ke mining area me kaam karti hai.

Main Revenue Sources:

Mining & Processing: Kota Stone (Blue aur Brown variants) ka extraction aur polishing. Ye exteriors, pathways, aur balconies me construction ke liye use hota hai.
Sandstone: Kandla Grey aur White Sandstone ka production.
Wind Energy: Company ke paas wind power plants bhi hain jo internal consumption aur grid supply ke liye use hote hain.

Domestic vs Export Exposure:

Domestic: Revenue ka major hissa (approx 85-90%) domestic construction market se aata hai.
Export: Company Dubai aur baaki international markets me high-end processed stone export karti hai.

2️⃣ Industry & Sector Analysis

Sector Status: Stable Growth. India ka infrastructure push aur real estate revival Kota Stone ki demand ko maintain kar raha hai.
Industry Type: Secular with Seasonal Volatility. Monsoon ke dauran mining production thoda rukta hai, lekin demand long-term me bani rehti hai.
Growth Drivers: PM Awas Yojana, Smart Cities, aur commercial construction.
Major Competitors: Unorganized sector (Local quarries) se bada competition hai. Organized space me Pokarna Ltd aur Inani Marbles (related segments) peers hain.

3️⃣ Latest Financial Performance (Consolidated)

Currency: INR Crores (₹ Cr)

Metric	Q3 FY26 (Dec 25)	Q2 FY26 (Sep 25)	Q3 FY25 (Dec 24)	Change (QoQ)	Change (YoY)
Revenue	50.70	20.56	49.24	+146.6%	+3.0%
Net Profit	12.30	0.81	12.18	+1413%	+1.0%
OPM %	~27.8%	-9.0%	~29.6%	Reversal	Stable
EPS (₹)	1.37	0.09	1.35	–	–

Historical Trend (Last 5 FY):

| :— | :— | :— | :— | :— |

| Mar 2025 | 155 | 23.6 | 15.7% | 7.0% |

| Mar 2024 | 145 | 25.1 | 13.7% | 7.4% |

| Mar 2023 | 138 | 18.8 | 16.1% | 6.2% |

| Mar 2022 | 202 | 7.7 | 3.0% | 2.6% |

| Mar 2021 | 173 | 11.2 | 14.4% | 3.8% |

Financial Analysis:

Q3 Recovery: Aaj (28 Jan 2026) announce hue results me company ne zordaar recovery dikhayi hai. Revenue 146% QoQ badha hai kyunki Q2 me monsoon ki wajah se production hit hua tha.
Debt/Equity: 0.04 – 0.11 (Virtually Debt-Free). Company ki balance sheet kaafi strong hai.
Cash Flow: Operating Cash Flow steady hai, lekin mining expansion me reinvestment zyada hoti hai.

4️⃣ Management & Shareholding (Dec 2025)

Category	Holding %	Status
Promoters	73.07%	Stable & High (Confidence Signal)
FIIs	0.00%	Negligible / No Interest
DIIs	0.00%	Negligible
Public	26.93%	Mostly Retail

Governance Signal:

Independent Director Change: Aaj (Jan 28, 2026) Gaurang Gandhi ne resign kiya hai aur Rajaram G. Agarwal ko naya Independent Director appoint kiya gaya hai.
Cyber Security: Jan 1, 2026 ko company ne website hack hone ki report di thi, jo ab resolve ho chuki hai.

5️⃣ Valuation (As of Jan 28, 2026)

Current PE Ratio: ~10.6x (TTM)
Price to Book (P/B): 0.64x (Trading below Book Value)
Industry PE: ~22.7x
Valuation Interpretation: Stock undervalued lag raha hai. Apne book value se niche trade karna aur low PE (vs Industry) margin of safety deta hai.

6️⃣ Future Growth Triggers (3–5 Years)

Fully Integrated Model: Mining se lekar finished tiles tak khud process karne se margins badhne ki ummeed hai.
Solar & Wind Expansion: Renewable energy use karke power costs kam karne ki strategy.
Dubai Market: Exports me focus badhane se foreign currency gains aur premium pricing ka fayda.

7️⃣ Present Situation (Current Outlook)

Stock Phase: Deep Value Play. Stock 52-week high (₹46) se girkar ₹25 par consolidate ho raha hai.
Short-term: Positive. Aaj ke Q3 results (₹12.3 Cr profit) market sentiment ko boost karenge.
Long-term: Bullish, agar margins 15-20% range me sustain karein.

8️⃣ Risk & Red Flags

Regulatory Risk: Mining leases aur environmental clearances me badlav business ko rok sakte hain.
Commodity Pricing: Kota stone ke prices me girawat margins ko hit karti hai.
Labour Costs: New Labour Codes (Nov 2025) se employee benefit expenses me ₹4.7 Lakhs ka increment hua hai.

9️⃣ Final Verdict

Summary: ASI Industries ek solid asset-based company hai jiske paas huge mining reserves hain aur wo debt-free hai. Aaj ke Q3 results ne opertional recovery confirm ki hai.
Conservative Investor: HOLD. Dividend yield (1.6%) aur low downside risk isey ek safe bet banate hain.
Aggressive Investor: BUY. Deep discount (0.64 P/B) par mil raha hai. Re-rating potential kaafi high hai.
Target Range: ₹35 – ₹40 (1 Year Horizon, based on PE normalization).

Disclaimer: Ye article sirf educational purpose ke liye hai. Kisi bhi nivesh se pehle apne Financial Advisor se salah zarur lein.