Kajaria Ceramics Ltd's (Kajaria) Q2FY21 result was a beat to our as well as consensus estimates. Apart from healthy pickup in production after a lull in Q1FY21 and robust sales volume growth, the management's guidance on sustainable EBITDA margin expansion along with strong sales growth stole the show. Net sales declined by 0.3% YoY to Rs7,215mn, while EBITDA came in at Rs1,437mn, increased by 36.5% YoY. The company reported net profit of Rs896mn, marginally lower by 3.8% over Q2FY20. Our interaction with the management suggests that demand is back to normalcy, particularly in retail market in Tier-II and smaller cities, though institutional demand is still laggard in metros....