Add Kajaria Ceramics, target price Rs 1075: ICICI Securities

ICICI Securities has add call on Kajaria Ceramics with a target price of Rs 1075. The current market price of Kajaria Ceramics Ltd. is Rs 1002.5. Time period given by analyst is one year when Kajaria Ceramics Ltd. price can reach defined target.

Kajaria Ceramics Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 15943.89 Crore) operating in Building Materials sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 844.77 Crore, up 17.77 % from last quarter Total Income of Rs 717.30 Crore and up 13.17 % from last year same quarter Total Income of Rs 746.43 Crore. Company reported net profit after tax of Rs 121.03 Crore in latest quarter.

Investment Rationale
With industry tailwinds (demand and pricing) likely to sustain for branded ceramic tile players (barring one-third impact on Q1FY22 volume), the brokerage expects double digit volume growth and healthy margins to sustain in near-to-medium term.

Promoter/FII Holdings
Promoters held 47.5 per cent stake in the company as of March 31, 2021, while FIIs held 25.8 per cent, DIIs 13.9 per cent and public and others 12.8 per cent.