Kajaria Ceramics (KJC) is set to benefit from the recent drop in gas prices. We believe that the phase of an earnings downgrade seen over the last few quarters is now over for the company. Bloomberg Consensus earnings were downgraded by 33%/31% for FY19/FY20 after Q3FY18 due to a 15.5% surge in gas prices and pricing pressure on tiles. Our channel checks suggest about 9% cut in gas prices by Gujarat Gas in January 2019 along with expectations of a further price reduction by 7-8% in February 2019, if crude remains at current levels. Prices of tiles have stabilized and companies have initiated a price increase of 1-2% in different segments over the last three-four months....