Hold Kajaria Ceramics; target of Rs 725: ICICI Direct

ICICI Direct's research report on Kajaria Ceramics

Kajaria Ceramics’ (Kajaria) topline grew 9.9% YoY to Rs 719.7 crore marginally better than our estimate of Rs 689.1 crore mainly on account of volume growth of 10.9% to 19.3 million square metre (MSM) vs. our expectation of volume of 18.2 MSM.

Outlook

However, post the recent rally in the stock (up 21.5% in three months), we see limited upside. Hence, we continue to maintain our HOLD rating with revised TP of Rs 725 (30x FY19E EPS).