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Last Updated : Feb 05, 2019 04:16 PM IST | Source: Moneycontrol.com

Accumulate Kajaria Ceramics; target of Rs 572: Kotak Securities

Kotak Securities recommended accumulate rating on Kajaria Ceramics with a target price of Rs 572 in its research report dated January 21, 2019.

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Kotak Securities' research report on Kajaria Ceramics


Kajaria Ceramics results were ahead of our estimates led by healthy volume growth and marginal sequential improvement in realization. Margin decline on YoY basis was expected due to higher gas prices but sequentially gas prices have corrected sharply during the quarter thereby aiding margins. Volume growth is likely to be strong and further margin improvement is expected in coming quarters with reduction in gas prices. Performance of JVs is also improving.


Outlook


Stock is currently trading at valuations of 34.4x and 28.1x P/E on FY19 and FY20 estimates respectively. We revise our estimates to factor in lower gas prices translating into higher margins and arrive at a revised target price of Rs 572 on FY20 estimates (Rs 500 earlier).


For all recommendations report, click here


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First Published on Feb 5, 2019 04:16 pm
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