🧠 At a Glance
Manoj Ceramic Ltd is a B2B and retail ceramic tile trader using third-party manufacturing, riding India’s infra boom. With ₹164 Cr in FY25 revenue and 119% PAT CAGR (3Y), it sounds like a multibagger. But a 246-day cash cycle, -₹40 Cr operating cash, and promoter exit make this a case of “tiles looking shiny, but base is cracked.”
1. 🎬 Introduction – Welcome to TileTok, SME Edition
You’ve heard of Kajaria. You’ve heard of Somany.
But then there’s Manoj Ceramic, trading tiles under the brand MCPL, sourcing from third parties, selling through showrooms and builders, and calling themselves infra enablers.
🧾 FY25 Snapshot:
- ₹164 Cr sales
- ₹11 Cr PAT
- ROE = 15.9%
- Cash flow = -₹40 Cr
It’s not a manufacturer, not a D2C startup, not a tech-enabled infra disruptor. It’s a glorified trader… but with glossy packaging.
Let’s break it down—piece by polished ceramic piece.
2. 🧱 WTF Do They Even Do?
Manoj Ceramic’s business = Trade + Distribute + Brand
- 🏢 Products: Ceramic tiles, tile adhesives
- 🧑🔧 Sales via:
- Dealers
- Own showrooms
- B2B supply to architects/builders
- Export channels
📦 Zero in-house manufacturing
✅ Third-party tie-ups = asset-light
❌ Low pricing power, supply dependency
In short: they don’t make tiles, they just move them with margin.
3. 📈 Financials – Beautiful on the Outside
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 74 | 96 | 164 |
| Net Profit (₹ Cr) | 4 | 6 | 11 |
| OPM (%) | 12% | 15% | 14% |
| ROE (%) | 18% | 20% | 15.9% |
| ROCE (%) | 18% | 20% | 17.7% |
🧠 3-Year Sales CAGR = 56%
🧠 3-Year PAT CAGR = 119%
They’ve doubled revenue and almost tripled profit in 3 years.
Margins holding steady. But wait for the next part.
4. 💸 Valuation – Is It Dirt Cheap or Overpolished?
CMP = ₹192
📦 Market Cap = ₹239 Cr
📊 P/E = 22.1x
📚 P/BV = 2.06x
🧮 Book Value = ₹93.4
🧠 Fair Value Range = ₹160–₹190
Based on 18–20x FY25 PAT (₹11 Cr), considering:
- Zero debt reduction
- High debtor days
- SME scale risks
It’s not expensive, but it’s priced assuming continued growth, not pricing in promoter exits.
5. 🔥 What’s Cooking – Investor Meets & Exit Dramas
🛎️ Recent Activity:
- 🎤 Held multiple investor meets in June 2025
- 📉 Promoter stake dropped from 71.67% → 48.14% in 6 months!
- 🤷 FIIs entered in March and fully exited by June
This is like your friend posting #WorkHardPlayHard and quitting the job two days later.
Red flag alert: Promoter dilution without business model shift.
6. 🏦 Balance Sheet – Behind the Wall Paint
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹2 Cr | ₹8 Cr | ₹14 Cr |
| Reserves | ₹9 Cr | ₹21 Cr | ₹93 Cr |
| Borrowings | ₹53 Cr | ₹60 Cr | ₹58 Cr |
| Total Assets | ₹79 Cr | ₹105 Cr | ₹190 Cr |
🔺 Reserves jumped = likely post-IPO funds
📉 Debt remained high (₹58 Cr)
🧱 Fixed assets = just ₹5 Cr — confirms they don’t own plants
This is a heavy working capital game.
7. 💵 Cash Flow – This Is Where It Cracks
| FY | CFO (₹ Cr) | FCF Status |
|---|---|---|
| FY23 | -₹10 Cr | ❌ |
| FY24 | -₹12 Cr | ❌ |
| FY25 | -₹40 Cr | 🚨🚨🚨 |
🤯 Three years of negative operating cash flow, despite growing profit
It’s selling profit but bleeding real cash.
Working capital monster alert 🧟
8. 📊 Ratios – Pretty Margins, Ugly Cycle
| Metric | FY25 |
|---|---|
| ROE | 15.9% |
| ROCE | 17.7% |
| Debtor Days | 163 |
| Inventory Days | 136 |
| Payable Days | 53 |
| Cash Conversion | 246 days |
| Working Capital Days | 305 |
🧾 A tile is sold, but cash arrives 8 months later.
That’s not distribution, that’s charity.
9. 📉 P&L Breakdown – Show Me the Money
- Revenue (FY25): ₹164 Cr
- EBITDA: ₹23 Cr
- PAT: ₹11 Cr
- EPS: ₹9.46
- OPM: 14%
Margins are stable. Profits are real.
But the biz is too credit-dependent to scale safely.
10. ⚔️ Peer Comparison – Are They Really Kajaria 2.0?
| Company | P/E | ROE % | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|
| Kajaria | 50.1 | 12.7 | 4,635 | 341.7 |
| Somany | 39.3 | 7.9 | 2,658 | 59.3 |
| Murudeshwar | 26.6 | 2.7 | 202.9 | 9.9 |
| Manoj Ceramic | 22.1 | 15.9 | 164 | 11 |
They have better ROE than bigger peers (for now), but:
- No mfg moat
- No cash
- No brand like Kajaria/Somany
- Shrinking promoter stake
So let’s not jump to multi-bagger fantasies just yet.
11. 🧾 Shareholding – Who’s Holding the Tiles?
| Quarter | Promoter Holding |
|---|---|
| Dec 2023 | 71.67% |
| Mar 2025 | 52.36% |
| Jun 2025 | 48.14% |
📉 That’s 23.5% stake reduction in 6 months.
📈 Public now owns 51.8% – classic SME shift pattern.
And guess what? FIIs exited in 1 quarter. Short honeymoon.
12. 🧠 EduInvesting Verdict™
✅ Strong 3-year growth
✅ Decent ROE and margins
✅ SME trader riding real estate boom
BUT…
❌ No real cash flow
❌ Crippling debtor/inventory days
❌ Promoter exits = lack of conviction
❌ No production moat
Verdict™:
“Tiles toh theek hai boss, but ye story phisal gayi before it could shine.”
Only invest if you love credit-fueled B2B hustle, or you’re into stock market ceramics and chill.
🏷️ Tags:
Manoj Ceramic, tile distribution stocks, ceramic SME, working capital trap, Kajaria vs Manoj, SME retail analysis, negative cash flow stocks, EduInvesting
✍️ Written by Prashant | 📅 July 1, 2025
