Kajaria Ceramics Ltd. share price target

The company has announced a large capex of | 250 crore (seeing strong demand and higher utilisation) in FY22, which will increase its overall capacity by 18% and generate ~| 500 crore worth of additional revenue...

Consolidated Q1 revenue grew 102% YoY as tile volumes doubled, aided by a soft lockdown-hit base quarter

Continued traction seen in export business. Additionally, company is well positioned to pass on the cost inflation to its customers. We expect the domestic business to bounce back as economic activity rises. With an optimistic outlook, we upgrade our rating to ACCUMULATE with revised target price of Rs. 1,110 based on 36x FY23E adj. EPS. Topline growth driven by demand rebound For Q4FY21, Revenue growth surged 46.1% YoY to Rs. 953cr (+13.6% QoQ), primarily led by sales volumes of 25.4 MSM (+39.2% YoY) with urban demand...

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'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...

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,...

KJC reported consolidated Q4FY21 revenue growth of 46% YoY as tile volumes grew 39%, aided by a soft lockdown-hit base quarter

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...