Kajaria Ceramics - Recovery seems priced in
Firming margins, healthy free cash flow, and expectations of higher earnings through the next year support a positive outlook for Kajaria Ceramics
November 20, 2020 / 09:57 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
The year 2020 started on a positive note for housing, but the pandemic triggered a major demand collapse during the lockdown. After hitting a low point in the peak summer season, the housing market has staged a dramatic comeback and demand has recovered significantly on the back of the work-from-home culture and the ultra-low interest rate environment. The historic recovery in housing has surprised everyone and the same was evident in the September quarter results of tile manufacturer...