Buy Kajaria Ceramics; target of Rs 648: Kotak Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Kotak Securities' research report on Kajaria Ceramics

Kajaria Ceramics results were marginally lower than our estimates due to rise in power and fuel cost and pressure on realizations. Management has reduced the guidance for margins going forward owing to higher gas prices but expects to grow volumes by 12-15% going forward. Loss making JVs have now achieved break-even and are now expected to make profits going forward.  Stock is currently trading at valuations of 27.2x and 24.5x on FY19 and FY20 estimates respectively. We revise our estimates to factor in slightly lower realizations and higher costs while keeping the volume growth intact.

Outlook

We arrive at a revised price target of Rs 648 based on 30x FY20 estimated earnings (Rs 694 earlier). We believe that though the shift from unorganized to organized players post GST implementation has not happened to a large extent so far, but with e-way bill implementation, organized players like Kajaria Ceramics are likely to benefit with market leading position and wide offering of products.  This is likely to be reflected in 1-2 quarters. We remain positive on the company and upgrade the stock to BUY from ACCUMULATE earlier.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More