Kajaria Ceramics Ltd. share price target

Kajaria Ceramics (KJC) posted a below-expected Q4FY20 with revenue down 20% YoY as tile volumes fell 19%.

The GCC today imposed anti-dumping duty on ceramic tile imports from India and China from 6 June 2020 for five years.

We expect the ongoing lockdown to severely hamper demand for building materials in H1FY21 with some revival only from H2.

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...

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...