Kajaria Ceramics Ltd. share price target

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...

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...

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) posted a below-expected Q2FY20 with revenue down 1.5% YoY (volumes +1.1%, realisations 3.5%).

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 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...

Management cuts volume growth guidance for FY20E Sales volumes grew 9.6% YoY to 19.6 MSM in Q1FY20. The management indicated that the operational environment remains challenging while the overall industry growth is expected to remain muted in FY20E. However, it expects sales volumes to grow strongly on the back of gains in market share amid the industry's transition to gas based plants & stricter e-way bill implementation. The management has, however, cut its sales volume guidance to 12-13% YoY in FY20E (15% growth guided earlier) on the back...

Background: Kajaria Ceramics the largest tile manufacturer in India, with a 68 msm annual capacity (29.47MSM Ceramic tiles, 22.4MSM PVT and 16.5MSM GVT) spread across eight plants; four plants in Morbi, Gujarat with cumulative capacity of 19.57 MSM, one each in Sikandrabad - UP (8.4MSM), Vijayawada - AP (2.9 MSM), Malutana Rajasthan (6.5 MSM) and Gailpur - Rajasthan (31 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 Superbrand' status which they have retained for the sixth...

Kajaria Ceramics (KJC) posted below-expected Q1FY20 revenue growth of 6.5% YoY, with volumes up 9.6% but realisations down 3.8%.

Sector: Construction Material /Mid-Cap | Earnings Update 4QFY19 Background: Kajaria Ceramics the largest tile manufacturer in India, with a 68 msm annual capacity (29.47MSM Ceramic tiles, 22.4MSM PVT and 16.5MSM GVT) spread across eight plants; four plants in Morbi, Gujarat with cumulative capacity of 19.57 MSM, one each in Sikandrabad - UP (8.4MSM), Vijayawada - AP (2.9 MSM), Malutana Rajasthan (6.5 MSM) and Gailpur - Rajasthan (31 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 Superbrand' status which they have retained for the sixth...