Hold Kajaria Ceramics; target of Rs 1488: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Kajaria Ceramics with a target price of Rs 1488 in its research report dated July 24, 2024.

Broker Research

July 24, 2024 / 12:49 IST

hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Kajaria Ceramics

Kajaria Ceramics (KJC) reported healthy volume growth of +7.8% YoY during a challenging quarter, while realization corrected 4.1% YoY. KJC has guided tiles volume/revenue growth of 11.0-12.0%/8.0-9.0% and overall EBITDA margin of 15.0-17.0% for FY25. We expect ~10.0% CAGR in tiles volume over FY24-26 with cons. EBITDA margin of 16.0% in FY26. The management has indicated gradual pick-up in FY25 volume and growth driven by 1) capacity additions, 2) increase in dealer penetration & showrooms, 3) brand building, 4) expansion of product portfolio, 5) increased focus on govt. projects, and 6) improved business efficiency.

Outlook

We expect revenue/EBITDA/PAT CAGR of 12.6%/15.3%/17.1% over FY24-26E. Maintain ‘HOLD’ rating, as we value the stock at 40x FY26 EPS to arrive at a TP of Rs1,488 (same as earlier).

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