Dolat Capital's research report on Kajaria Ceramics
Kajaria Ceramics reported topline of ` 6.5 bn (+4.6% YoY, -12.4% QoQ), 4.5% higher than D’est. Tile segment reported topline growth of 2.1% YoY on the back of 8.7% YoY growth in Volumes (-11.5% QoQ), Volume growth of 8.7% YoY during the quarter driven by 20.8% YoY growth in own manufacturing sales. Blended realisation for the tile division declined to ` 345/MSM (-6.1% YoY, -0.5% QoQ).Sanitaryware/Faucets division reported 68.7% YoY growth (-19.2% QoQ). Capacity addition by Morbi based players in the wall segment likely to impact realisations going forward.
Outlook
We have cut our eps estimates for FY19E/20E by 11.5%&22.5% respectively. At CMP KJC is trading at 29x/24x FY19E/20E EPS of `14.7 & 17.9 respectively. We maintain BUY recommendation with a revised target price of ` 538/share.
For all recommendations report, click here
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