ICICI Direct's research report on Kajaria Ceramics
Kajaria Ceramics performance was strong across topline & bottomline. The sales volumes were up 10.5% YoY at 22.6 MSM, as utilisation got back to full levels coupled with strong outsourced sales driven by robust rebound in demand. The topline was up 13.1% YoY at Rs 838.4 crore with stable realisations (up 0.3% YoY). Tiles Revenues were up 10.9% YoY at Rs 758.2 crore. Faucet and Sanitaryware revenues were up 36% YoY at Rs 67.4 crore. Plywood revenues were up 57.6% YoY at Rs 12.8 crore, on a low base. EBITDA at Rs 181.8 crore with margins at 21.7% were up 667 bps YoY driven by lower other expenses and operating leverage. The beat at operating level percolated to PAT wherein it reported a Rs 118.9 crore, up 93% YoY
We maintain BUY and roll over our valuations to FY23E at 29x P/E (vs. 30x FY22E P/E, earlier) to ascribe revised target price of Rs 950/share.