Kajaria Ceramics Ltd. share price target

It is likely to be a weak FY21 for the tiles industry, as a whole, with a washout H1, discretionary nature of demand and real estate demand pressure. Kajaria, however, with a net cash balance sheet and superior brand, is likely to tide over the challenging times and even capitalise on market share gain during recovery phase. We raise our earnings estimates by 4% and 8%, respectively, given the commentary by management on production and demand traction. However, we would turn constructive once sustained volume recovery is seen. We maintain our HOLD recommendation on the...

Kajaria Ceramics (KJC) posted a consolidated Q1FY21 revenue decline of 60% YoY albeit bettering our estimates as tile volumes fell 61% due to the lockdown.

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 (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...

Kajaria Ceramics posted a weak set of Q4FY20 numbers on the topline front with steep volume decline due to Covid-19. Sales volumes fell 20% YoY to 18.2 MSM on account of Covid-19 impact, specifically in the second of March. However, it is pertinent to note that the volume decline was relatively lower than ~28% decline reported by its key peer Somany Ceramics. The topline de-grew 20% YoY to | 652 crore. The EBITDA margin contracted 76 bps YoY to 14.3% and was higher than our expectation of 13.2%, largely on account of lower other expenses. EBITDA at | 93.4 crore fell 24.1% YoY....

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...