HDFC Securities' research report on Kajaria Ceramics
We believe KJC will continue to get a premium valuation, driven by its strong brand positioning and distribution, which are driving its market share gain. Gas price cool-off should also lead to a margin rebound in FY24E. In Q4FY23, KJC delivered a healthy 8% YoY tiles volume growth (5-year CAGR: +7%). Gas price correction drove 240bps EBITDA margin recovery QoQ to 14.6%.
Outlook
We maintain BUY on Kajaria Ceramics (KJC) with an unchanged target price of INR 1,310/share (21x its Mar’25E consolidated EBITDA, 35x implied PE).
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