Kajaria Ceramics Ltd. share price target

Q4 revenue grew 16% YoY (+3% QoQ) spurred by a 13% rise in tile realisations; volume growth was subdued at 2%

While concern remains around higher fuel costs, company's long-term outlook remains promising with strong economic revival despite the supply chain constraints and lockdown, increased sales volumes, ramp up of construction activities and low interest rates regime. Given current upside potential at current price levels, we reiterate our ACCUMULATE...

Apart from earlier announced capex of | 250 crore on tiles in FY22, it is adding 5 MSM greenfield GVT capacity in FY23 (revenue potential - | 400 crore) & | 80 crore capex in sanitaryware segment Q3FY22 Results: Mixed Bag results with higher volume growth but lower margins. Topline was up 27.4% YoY at | 1068.2 crore with tiles revenues up 26.8% YoY at | 961.6 crore, led by volume growth of ~13.5% YoY at 25.6 MSM...

Q3 revenue grew 27% YoY (+10% QoQ) driven by 14% volume growth to 25.6msm the highest-ever volumes for KJC

Strong customer sentiments, revival in B2B business, market share gains and revival in construction sector is supporting growth. We expect the exports business to improve as company started its operations in Dubai. With an optimistic outlook, we reiterate our ACCUMULATE rating...

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 Q2FY22 Results: Kajaria reported robust results led by strong volumes growth. Revenue was up 36.6% YoY at | 973.6 crore. Tiles sales volumes were up ~25% YoY at 24.8 MSM and tiles revenues were up 35.6% YoY at | 882.6...

Q2 revenue grew 37% YoY (+73% QoQ) driven by 25% volume growth to 24.8msm

Kajaria Ceramic's (Kajaria) Q2FY22 result was beat to our and consensus estimates on key parameters. After a subdued performance in Q1FY22 owing to second wave of Covid-19, the company reported encouraging sales volume growth as well as higher NSR in Q2FY22. Net sales increased by 36.6% YoY to Rs9,736mn, while EBITDA came in at Rs1,805mn, an impressive growth of 25.6% over Q2FY21. The company reported net profit of Rs1,193mn. The management reiterated 15% sales volume growth and ~20% net sales growth in H2FY22E. We believe Kajaria is poised to benefit from strong demand as the company's 3 new plants are expected to be completed by year end and would drive higher earnings growth in future. We have...

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,...

Another quarter of robust sales volume growth On a low base of Q1FY21, Kajaria reported 99% YoY sales volume growth to 15.3MSM. Overall capacity utilization was at 75%. Statewide lockdown amid second wave of Covid-19 played a spoilsport on demand in April and May. However, healthy recovery was seen in June, which further strengthened in July. Retail demand in TierI, II and III has been encouraging in Q1FY22 and the management guided it to remain strong in near term. The company's capacity expansion plan bodes well for increasing market share in the domestic tile market. Bathware and plywood segment too reported robust net sales growth of 113%/117% respectively over Q1F21....

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...

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,...