Kajaria Ceramics Q2 PAT may dip 27.3% YoY to Rs. 86.7 cr: Yes Securities

Kajaria Ceramics | CMP: Rs 1128.10 | The stock gained over 13 percent in the week gone by. The company's Q1 revenue grew 80% YoY down 8.5% QoQ spurred by a 15% (+2% QoQ) rise in tile realisations and 53% (-10% QoQ) volume growth. According to brokerage firm Sharekhan, the company reported a strong beat on net earnings for Q1FY2023 led by higher-than-expected revenue growth and operating margins. The management retained 15-20% y-o-y volume growth guidance for FY2023 although reframed from giving guidance on OPM due to volatility in gas prices. It acquired 51% stake in South Asian Ceramics having 4.8msm ceramic floor tiles capacity which would strengthen its presence in South. It has retained a buy rating on Kajaria Ceramics with a revised target of Rs 1300 on account of strong earnings growth led by market share gains.