Kajaria Ceramics Ltd. share price target

Kajaria Ceramics (KJC) has reported fraud in its step-down subsidiary Kerovit Global (Kerovit) following investigations; the Rs200mn fraud is substantial, considering that it is 13% of Kerovit’s total assets as of FY25.

Kajaria Ceramics (KJC) in an exchange filing disclosed a financial fraud conducted by Mr. Dilip Maliwal, CFO of Kerovit Global, a wholly-owned subsidiary of Kajaria Bathware and a step-down subsidiary of KJC.

Cost rationalisation measures boost margins: We highlight the company has taken various measures including staff rationalisation, promoters forgoing salary, unification of sales and packaging re-engineering etc. to control cost, which has boosted operating margins. The company's cost optimization measures included the unification of sales and procurement functions for bulk purchasing, packaging re-engineering resulting in annual savings of 3035 crore, workforce rationalization, a hiring freeze, and stringent control over advertising expenditures. Management expects Profitability to improve on...

Kajaria Ceramics reported a broadly in-line Q2FY26 estimates on the revenue front, however profitability beat expectations on the back of sustained cost optimization measures. Consolidated revenue stood at Rs12bn, up just 1% YoY, reflecting continued weakness in tiles volume amid sluggish domestic demand. However, EBITDA rose sharply by 34% YoY to Rs2.1bn, aided by savings in packaging, procurement, and manpower costs, translating into a margin of 18% (+452bps). PAT came in at Rs1.3bn (+58% YoY). Management highlighted that short-term pain from the ongoing unification of sales and operations has...

We maintain BUY on Kajaria while raising our TP by ~7% to Rs1,550 (from Rs1,450). The company has delivered superior profitability with EBITDA margins significantly expanding by 450bps YoY/110bps QoQ in Q2FY26.

Kajaria reported a moderate financial performance, impacted by a challenging market environment, with domestic demand remaining sluggish. However, the company is optimistic about future growth, driven by potential export improvements, slightly better domestic demand and government initiatives. The integration of its divisions and efforts to optimise costs are expected to yield benefits. Although the integration is expected to improve margins and increase volume growth, sluggish demand may still pose a risk to the realisation of these benefits. Considering these factors, we...

We have revised our FY26/27 earnings estimates upward by 18.0%/13.1% mainly with improvement in margins on account of cost saving with distribution consolidation, integration of tiles divisions and the discontinuation of low margin tiles. We had downgraded our rating to HOLD' from Accumulate', we value the stock at 36x FY27E EPS to arrive at revised TP of Rs1,192 (earlier Rs 1,171). The management has refrained from providing guidance due to prevailing low demand conditions but expects to outperform...

Kajaria Ceramic Ltd.'s (Kajaria) Q1FY26 result was broadly in-line with our estimate on net sales front, however, margins were beat to our forecast. The company undertook various cost saving measures which resulted into betterment of operating margin. The management guided no major capex in near term as demand in domestic market remains subdued. Given uncertainty in the domestic market, the company refrained from giving earnings guidance for FY26. Net sales was marginally up by 0.6% YoY to Rs11bn, while EBITDA came in at Rs1.8bn, higher by 9.3% YoY. The company reported net profit of Rs1.1bn, up...

We have revised our FY26/27 earnings estimates downward by 7.4%/9.1% due to weak demand, the discontinuation of the Kajaria Plywood business, and margin contraction. We had downgraded our rating to Accumulate' from BUY', we value the stock at 30x FY27E EPS to arrive at revised TP of Rs878 (earlier Rs 966). The management has refrained from providing guidance due to prevailing low demand conditions but expects to outperform the industry in FY26. KJC expects margins of ~14% in FY26, However, Q4FY25 margins were...

Weak Q4 on soft demand environment and margin pressure in tile segment; ceased plywood operations due to continued losses

Kajaria’s Q4FY25 performance was weak on sales volumes as well as profitability fronts and missed our expectations. However, on a positive note, it has gained market share in FY25 as sales volume growth of 6% YoY was ahead of the industry (2% YoY growth).

Kajaria Ceramics’ (KJC) 4QFY25 EBITDA was below our estimate due to lowerthan-estimated realization and higher-than-estimated other expenses. EBITDA (including discontinued operation) declined ~28% YoY to INR1.7b (~28% miss) and OPM contracted 3.8pp YoY to ~10% (est. ~13%).

Kajaria Ceramics’ Q3 revenue rose only 1% y/y to Rs 11.6bn. EBITDA/PAT fell 16.8%/25.4% y/y to Rs1.5bn/Rs777m, below ARe’s Rs1.9bn/Rs 1.2bn.

Kajaria Ceramics (KJC) reported Q3FY25 consol. revenue growth of 1% YoY with tile volume growth of 6.7% YoY (5- year CAGR of 7.2%) and realisation decline of 3.7% YoY (-1.9% QoQ). EBITDA margin shrunk 274bps YoY/69bps QoQ to 12.8% due to higher employee cost, other expenses and lower utilisation of new sanitaryware plant, resulting in 16.8%/25.4% YoY EBITDA/APAT dip.

Weak Q3 on sharp margin contraction due to weak demand in the retail market and high overhead costs of new bathware unit

Kajaria Ceramics (KJC)’s 3QFY25 EBITDA was below our estimate due to lowerthan-estimated revenue and weak realization.