Buy Kajaria Ceramics; target of Rs 1057: Motilal Oswal

Motilal Oswal is bullish on Kajaria Ceramics has recommended buy rating on the stock with a target price of Rs 1057 in its research report dated January 31, 2026.

Broker Research

February 02, 2026 / 18:19 IST

Buy

Motilal Oswal's research report on Kajaria Ceramics

Kajaria Ceramics (KJC) reported another soft quarter, with flat tile volume and revenue owing to weak demand conditions and intense competition. Bathware and Adhesives revenue grew 9% and 72% YoY, respectively. EBITDA margin slid 78bp QoQ to 17.2% (up 395bp YoY) on low volumes and liquidation of slow-moving SKUs in ceramic tiles. Reported PAT (up 13% YoY) was impacted by INR396m of extra-ordinary items on account of provision for the new labour code (~INR200m) and the financial fraud (~INR200m).

Outlook

While we expect a gradual recovery in volume, KJC’s stock price looks attractive at ~24x/20x FY27E/28E P/E after over 30% correction in the last six months. We retain a BUY rating on KJC with a TP of INR1,057, based on 26x Sep’27E EPS (~20% discount to 10-year mean on low volume growth).

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