Kajaria Ceramics Ltd. share price target

Q1 to witness Covid impact; recovery likely from Q2 onwards The management indicated that Covid has impacted overall operations with closure at dealership levels. It indicated that in April 2021, the company achieved ~75% of the internally projected topline while for May 2021, it was ~35%. It also indicated that June, 2021 demand has been recovering well with unlocking in many states. It is likely to achieve 75% of the estimated topline. Owing to Covid impact, it refrained from providing guidance (earlier guided for 20-25% topline growth with 20%+ margins in FY21). However,...

Kajaria Ceramics Ltd's (Kajaria) Q4FY21 result was in-line with our estimates on key parameters. Strong demand recovery boosted sales volume and resulted in highest ever net sales for Kajaria. Further, EBITDA margins improved with higher plant efficiency, better performance from subsidiaries & higher capacity utilization. Net sales increased by 46.1% YoY to Rs9,525mn, while EBITDA came in at Rs1,909mn, up by 104.5% YoY. The company reported net profit of Rs1,312mn, a robust growth of 166.5% over Q4FY20. After a strong demand recovery in H2FY21, second wave of Covid-19 has played a spoil sport and demand took a hit amid statewide lockdowns. The management remained cautious and refrained...

Given strong volume and promising outlook with robust growth in export business, and cost optimization, we maintain our HOLD rating on the stock with a rolled forward TP of Rs. 920 based on 35x FY23EPS. Topline growth driven by outsourcing business The company recorded revenue growth of 13.1% YoY to Rs. 838cr (+17.7% QoQ), largely led by sales volumes of 22.6 MSM (+10.5% YoY) with robust outsourced sales, and also coming back to normal level. Production volumes remained stable at 17.2 MSM (-1.1% YoY). Revenue from tiles business rose 10.9% YoY to Rs. 758cr, with own...

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 Ltd (Kajaria) reported another strong quarterly performance, particularly on operating margin front. Robust demand in retail market of from tier-I and smaller cities aided sales volume growth, while opening up of metros further strengthened demand trajectory. We believe with an all-round Q3FY21 performance, Kajaria has once again proved its leadership position in the domestic tile industry. Net sales increased by 13.1% YoY to Rs8,383mn, while EBITDA came in at Rs1,818mn, up by 63.3% YoY. The company reported net profit of Rs1,210mn, a robust growth of 98.8% over Q3FY20. While reiterating healthy volume growth outlook of higher mid-teens, the management has revised EBITDA...

Kajaria Ceramics performance was strong across topline & bottomline. The sales volumes were up 10.5% YoY at 22.6 MSM, as utilisation got back to full levels coupled with strong outsourced sales driven by robust rebound in demand. The topline was up 13.1% YoY at | 838.4 crore with stable realisations (up 0.3% YoY). Tiles Revenues were up 10.9% YoY at | 758.2 crore. Faucet and Sanitaryware revenues were up 36% YoY at | 67.4 crore. Plywood revenues were up 57.6% YoY at | 12.8 crore, on a low base. EBITDA at | 181.8 crore with margins at 21.7% were up 667 bps YoY driven...

Kajaria Ceramics (KJC) posted an above-expected Q3FY21 with 13% YoY revenue growth and volumes up 11%.