Kajaria Ceramics Ltd. share price target

Kajaria Ceramics Ltd's (Kajaria) Q2FY21 result was a beat to our as well as consensus estimates. Apart from healthy pickup in production after a lull in Q1FY21 and robust sales volume growth, the management's guidance on sustainable EBITDA margin expansion along with strong sales growth stole the show. Net sales declined by 0.3% YoY to Rs7,215mn, while EBITDA came in at Rs1,437mn, increased by 36.5% YoY. The company reported net profit of Rs896mn, marginally lower by 3.8% over Q2FY20. Our interaction with the management suggests that demand is back to normalcy, particularly in retail market in Tier-II and smaller cities, though institutional demand is still laggard in metros....

Kajaria Ceramics (KJC) posted an above-expected Q2FY21 with stable YoY revenue and volumes, aided by better traction in tier-2 cities and below.

Kajaria Ceramics (KJC) is currently India's leading manufacturer of ceramic and vitrified tiles. I

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....