Time period given by analyst is one year when Kajaria Ceramics Ltd. price can reach defined target.
Kajaria Ceramics Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 19518.69 Crore) operating in Building Materials sector.
Kajaria Ceramics Ltd. key Products/Revenue Segments include Tiles, Other Operating Revenue and Power for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 980.67 Crore, up 72.76 % from last quarter Total Income of Rs 567.66 Crore and up 36.72 % from last year same quarter Total Income of Rs 717.30 Crore. Company reported net profit after tax of Rs 119.32 Crore in latest quarter.
Investment Rationale
The brokerage maintains BUY rating on Kajaria Ceramics (KJC) with an unchanged target price of INR 1,360/share (21x its Sep’23E consolidated EBITDA). It continues to like KJC for its superior margin in the tiles segment (function of its robust distribution and cost controls) and its fast expansion in the bathware and ply businesses. In Q2FY22, KJC’s consolidated net sales rose 37/26/30% YoY to INR 9.74/1.81/1.16bn respectively. This is driven by strong growth across tiles (revenue up 37%) and bathware/ply segments (+48%). However, EBITDAM cooled off marginally by 160bps YoY to 18.5% on surging gas prices. Working capital largely remained stable at Mar’21 levels. Supported by robust demand, the industry has taken a ~4% hike (third hike in FY22) in Oct’21 to pass on the soaring gas price impact.
Promoter/FII Holdings
Promoters held 47.51 per cent stake in the company as of 30-Sep-2021, while FIIs owned 24.89 per cent, DIIs 15.24 per cent.
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