The 19 reports from 8 analysts offering long term price targets
for Kajaria Ceramics Ltd. have an average target of 526.50. The consensus estimate
represents an upside of 5.30%
from the last price of 500.00.
We initiate coverage on Kajaria Ceramics (KCL) with an Accumulate, driven by attractive valuation, expected strong earnings growth from FY22 post recovery from Covid impact, comfortable balance sheet and strong cash flow. This is supported by high product quality, wide product range, robust distribution network, strong brand recall and high market share. The steep decline in KCL stock price by 26.7% from its 52 week high primarily highlights the concerns of slowdown in earnings growth due to the Covid pandemic. The continued weakness in the stock price implies that the market is not factoring in a recovery post Covid. In our view, the negative impact is overdone. We expect a sharp recovery towards normalcy from FY22. The...
It is likely to be a weak FY21 for the tiles industry, as a whole, with a washout H1, discretionary nature of demand and real estate demand pressure. Kajaria, however, with a net cash balance sheet and superior brand, is likely to tide over the challenging times and even capitalise on market share gain during recovery phase. We raise our earnings estimates by 4% and 8%, respectively, given the commentary by management on production and demand traction. However, we would turn constructive once sustained volume recovery is seen. We maintain our HOLD recommendation on the...
Kajaria Ceramics (KJC) posted a consolidated Q1FY21 revenue decline of 60% YoY albeit bettering our estimates as tile volumes fell 61% due to the lockdown.
Background: Kajaria Ceramics the largest tile manufacturer in India, with a 73 msm annual capacity (28.10MSM Ceramic tiles, 44.9MSM Vetrified tiles) spread across eight plants; three plants in Morbi, Gujarat with cumulative capacity of 15.9 MSM, one each in Sikandrabad - UP (8.4MSM), Vijayawada - AP (2.9 MSM) and Sri Kalahasti - AP (5 MSM), Malootana Rajasthan (6.5 MSM) and Gailpur - Rajasthan (34.3 MSM). Kajaria has a strong distribution network of 1,400 dealers, 5,000 sales points across the country and 34 display centers are located at all the Kajaria's offices. Kajaria is the only tile manufacturer in India to be awarded...
Kajaria Ceramics (KJC) is the largest manufacturer of glazed & unglazed ceramic tiles and vitrified tiles in India. The company has eight plants in Sikandrabad (UP), Gailpur and Malootana (Rajasthan), Morbi (Gujarat) and...
Kajaria Ceramics posted a weak set of Q4FY20 numbers on the topline front with steep volume decline due to Covid-19. Sales volumes fell 20% YoY to 18.2 MSM on account of Covid-19 impact, specifically in the second of March. However, it is pertinent to note that the volume decline was relatively lower than ~28% decline reported by its key peer Somany Ceramics. The topline de-grew 20% YoY to | 652 crore. The EBITDA margin contracted 76 bps YoY to 14.3% and was higher than our expectation of 13.2%, largely on account of lower other expenses. EBITDA at | 93.4 crore fell 24.1% YoY....
Real estate players (like all major sectors) have faced the brunt of Covid-19, which is apparent from the stocks having seen a sharp correction in the past month. Segment wise, mall developers would be the first casualty with closure of malls and invocation of Force Majeure by at least some tenants. Similarly, home buyers' demand as well as construction stoppage will impact the residential segment. On the other hand, office segment cash flows remain protected. We expect the ground level situation to remain operationally challenging for all companies in our coverage universe amid...
Kajaria Ceramics (KJC) is the largest manufacturer of glazed & unglazed ceramic tiles and vitrified tiles in India. The company has eight plants in Sikandrabad (UP), Gailpur and Malootana (Rajasthan), Morbi (Gujarat) and Vijayawada (AP), with annual capacity of 73 mn. sq. meters (MSM). The...
Background: Kajaria Ceramics is the largest tile manufacturer in India, with a 73 msm annual capacity (28.10MSM Ceramic tiles, 44.9MSM Vetrified tiles) spread across eight plants; three plants in Morbi, Gujarat with cumulative capacity of 15.9 MSM, one each in Sikandrabad - UP (8.4MSM), Vijayawada - AP (2.9 MSM) and Sri Kalahasti - AP (5 MSM), Malootana Rajasthan (6.5 MSM) and Gailpur - Rajasthan (34.3 MSM). Kajaria has a strong distribution network of 1,400 dealers, 5,000 sales points across the country and 34 display centers are located at all of its offices. Kajaria is the only tile manufacturer in India to be awarded Superbrand'...
Sales volumes were flattish YoY at 20.4 million sq mt (MSM) on account of weak consumer sentiment notwithstanding the festive quarter coupled with liquidity concerns, weakness in real estate sector and overall slowdown in economy. Overall, sales volumes have grown only 3.4% YoY to 59.8 MSM in 9MFY20. With this and with muted sales volumes expected in Q4FY20, the management has toned down its sales volume guidance to 4-5% in FY20. With the Coronavirus overhang in China, we expect Indian tiles manufacturers to witness increased exports traction in the near term....
Kajaria Ceramics (KJC) is the largest manufacturer of glazed & unglazed ceramic tiles and vitrified tiles in India. The company has eight plants in Sikandrabad (UP), Gailpur and Malootana (Rajasthan), Morbi (Gujarat) and Vijayawada (AP), with annual capacity of 73 mn. sq. meters (MSM). The...
Volume guidance toned down amid tough times Sales volumes grew just 1.1% YoY to 19.8 million sq mt (MSM) on account of low consumer sentiment, tight liquidity, floods across several parts of India and lost sales in Kashmir in Q2FY20. Nonetheless, it expects consumer sentiments to improve, which could drive operational performance in H2FY20E. Also, the 5 MSM Andhra plant that commenced commercial production in September, 2019 would support sales in South India once business sentiment improves in the region. However, considering the...
Kajaria Ceramics (KJC) reported below par performance and was mainly impacted by dismal sales volume. Sales volume (tiles) grew merely by 1% YoY to 19.75msm (our expectation / street expectation was 7.5% / 10%). Revenue declined marginally by 1.5% YoY to Rs7.14bn as against expectations of Rs7.4bn. EBITDA stood at Rs1.05bn (-3.4% YoY and -0.7% QoQ) marginally below our estimates of Rs1.1bn and EBITDA margin stood at 14.7% vs. 15% in last year and 15.1% in 1QFY20. Average realisation for tiles improved sequentially by 1.7% to Rs337/SM mainly led by favourable product mix, while operating cost/tonne deteriorated by 2% QoQ at Rs309/SM due to surge in input costs. PBT stood at Rs807mn (-2.8% YoY and flat QoQ) below our expectations...
After a challenging Q1FY20, there is no respite for building material products companies as sales off take remained subdued in Q2FY20 as well. Kajaria, the largest player of domestic tile industry, reported just 1% YoY sales volume growth in Q2FY20. Though realization has improved marginally by 1.2% over Q1FY20, it is still down by 3.5% YoY. The company reported net sales of Rs 7,147mn (-1.5% YoY) led by lower blended net sales realization. EBITDA came in at Rs 1,052mn (-3.4% YoY), while higher raw material cost weighed on EBITDA margin by 29bps YoY to 14.7%. The company...
After a strong FY19 performance (15% YoY volume growth), beginning of FY20E is on a softer note for Kajaria, owing to demand slowdown. The company reported net sales of Rs 7,000mn (+6.5% YoY) driven by 10% volume growth over Q1FY19. EBITDA came in at Rs 1,060mn (+9.5% YoY). Prudent cost management aided marginal EBITDA margin...
