Kajaria Ceramics Ltd. share price target

In the last one & half year Ceramic Industry faced multiple challenges, Demonetization and GST Implementation restricted volume growth. Collective might of the Un-organized players exerted volume/pricing pressure across product range (attributed to Vibrant Ceramic expo hosted by Morbi based players in Nov'2017 & Capacity addition in GVT segment by Morbi based players). We believe volume/pricing pressure will ease for the organized players as our channel checks and management commentary suggests Morbi association is unlikely to host next edition of Vibrant...

Kajaria Ceramics reported revenue growth of 4% YoY (+13% QoQ) to Rs7.5bn mainly led by 4.8% YoY volume growth at 20.2 msm. Blended realisation declined by 2.1% YoY and 2.9% QoQ mainly due to fall in GVT realisations. Notably, increase in gas prices, lower GVT realisations and loss from select JVs resulted in EBITDA de-growth of 8% YoY (+9% QoQ) to Rs1.2bn and EBITDA margin dipped by 214 bps YoY and 62 bps QoQ to 16%. However, problems of inefficient JVs have been resolved in the quarter and JV business is expected to see a decent traction hereon. Further, a consistent reduction in interest outgo due to debt pare down (Rs1.7bn debt in 4QFY18 v/s Rs2.1bn in 4QFY17) could aid profits further. Net profit stood at Rs696mn (-3.5%...

The topline grew 4.2% YoY to | 750.0 crore (our expectation: | 735.3 crore) mainly on account of volume growth EBITDA margin contracted 200 bps YoY to 16.0% (our estimate 16.6%) due to higher fuel costs (20.3% in Q4FY18 vs. 18.1% in Q4FY17) The bottomline declined 6.7% YoY to | 66.0 crore (our expectation: | 66.4 crore) mainly on account of EBITDA margin contraction The board has recommended a dividend of | 3 per share for FY18 Posts volume growth of 4.8% in Q4FY18...

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...