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Buy Kajaria Ceramics; target of Rs 1165: ICICI Direct

ICICI Direct is bullish on Kajaria Ceramics has recommended buy rating on the stock with a target price of Rs 1165 in its research report dated May 18, 2022.

May 19, 2022 / 12:40 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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ICICI Direct's research report on Kajaria Ceramics

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India with a current annual capacity of 82.8 mn square metre. Apart from completed capex of Rs 250 crore on tiles, it is doing Rs 80 crore capex in the sanitaryware segment.


Outlook

Kajaria is a quasi-play on housing. Post steep correction, we believe gas price uncertainty is largely built in. Thus we upgrade from HOLD to BUY. We value Kajaria at Rs 1165/share, at 35x FY24 P/E.

For all recommendations report, click here

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Broker Research
first published: May 19, 2022 12:40 pm

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