Kajaria Ceramics Ltd. share price target

Kajaria Ceramics reported revenue growth of 4.1% yoy, led by 2.9% yoy growth in Tiles segment and 28.8% yoy growth in Sanitaryware/Faucets. Lower realization and higher opex led to 8.2% yoy decline in EBITDA whereas net profit was down 3.5% yoy. Volume growth remained muted at 4.8% yoy (6.3% yoy in FY18). Blended realization in Tiles was down 1.8% yoy due to 7.5%/6.8% yoy decline in realizations of JV/Trading...

Kajaria Ceramics results were marginally lower than our estimates due to rise in power and fuel cost and pressure on realizations. Management has reduced the guidance for margins going forward owing to higher gas prices but expects to grow volumes by 12-15% going forward. Loss making JVs have...

We are positive on the company backed by increasing demand from increase in per capita income and spend on home improvement At CMP of Rs. 573.4 KCL is trading at a P/E multiple of 37.3x and 29.4x to its FY18E and FY19E earnings, respectively. On the basis of estimates. we...

Kajaria Ceramics reported weak Q3FY18 result, wherein Revenue increased by 9%, but Net profit declined 1.5% on yoy basis. The overall sales growth was in line with volume growth of 10%; however profit was impacted due to surge in gas prices and lower capacity utilization.

Volume grew 10% YoY (flat QoQ) largely on a low base of Q3FY17 (due to demonetization). We believe construction activity will remain subdued in near term; thus, expect volume growth to revert to sub-10% YoY in coming quarters.

Kajaria Ceramics Ltd Q3FY18 results comment Revenue fell by 1.5% to Rs. 661.16 Cr in Q3FY18 when compared to the previous quarter. On the other hand, it increased by 8.98% when compared with Q3FY17.

Kajaria Ceramics' (Kajaria) sales volumes grew 10.1% YoY to 17.55 MSM, marginally better than our estimate of 17.3 MSM The topline grew 9.0% YoY to | 661.2 crore (our expectation of | 667.2 crore) mainly on account of strong volume growth EBITDA margin fell 200 bps YoY to 16.6%(our expectation: 18.2%) due to higher power & fuel costs (18.3% in Q3FY18 vs. 16.6% in Q3FY17) The bottomline declined 1.4% YoY at | 54.3 crore (our expectation: | 61.1 crore) mainly on account of EBITDA margin contraction...

Kajaria Ceramic Ltd.'s (KCL) Q2FY18 result was below our expectation. Net Sales declined by 4.9% YoY on account of muted volume growth. EBITDA and PAT were down by 3.2% YoY and 8.3% YoY respectively.

Kajaria Ceramics (Kajaria) is the largest manufacturer of ceramic/vitrified tiles in India. It has an annual aggregate capacity of 63.90 mn. sq. meters (MSM). Constant product innovation and expansion of product range has made Kajaria a dominant player in the ceramic & vitrified tiles industry with a market share of ~10%. To further scale up its business, Kajaria has moved up the value-chain to emerge as a...

Kajaria Ceramics has reported a muted set of numbers in 2QFY18 mainly due to transitionary impact of GST roll-out. While its consolidated net sales grew by 6.7% YoY to Rs6.7bn vs. our estimate of Rs6.9bn, net profit came in largely flat at Rs630mn vs. our estimate of Rs656mn, and EBITDA margins contracted by 190bps YoY to 18.2%. Despite near-term headwinds, we believe that Kajaria Ceramics is comfortably placed to benefit from increasing share of organised tiles industry in GST regime. Being the market leader, the Company has made concerted efforts to create and enhance its brand strength, improve productmix and build a strong product pipeline. Expecting the Company to report 12.2% revenue and 18.8% earnings CAGR through FY17-19E, we maintain our BUY recommendation on the...