Buy Kajaria Ceramics, says Kamlesh Kotak

Kamlesh Kotak, Head of Research at AMSEC told CNBC-TV18, "We have been maintaining a buy on Kajaria Ceramics since long and the stance continues even now. The company reported phenomenal numbers on the fourth quarter both on the topline and bottomline front with 23 percent bottomline growth. What is heartening is to see a margin of 17 percent plus which is at the lifetime high for the company. Even going forward what we expect is the energy prices moderating and the expectation of the goods and service tax (GST), which will have some more of momentum for the stock not only from the medium-term but also from the long-term view."

"The company has built up a strong capacity building pipeline not only in tiles but also sanitaryware and faucets. So, we expect that earnings CAGR of almost 13 percent over the next two to three years with the strong brand, the leadership position, reach and the scale the company should continue to have a premium valuation and to that extent it will remain in our buy list," he said.