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    Buy Kajaria Ceramics, target price Rs 1310: HDFC Securities

    Synopsis

    Kajaria Ceramics Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 17351.65 Crore) operating in Building Materials sector.

    BuyAgencies
    Promoters held 47.5 per cent stake in the company as of 30-Jun-2022, while FIIs owned 19.58 per cent, DIIs 22.4 per cent.
    HDFC Securities has buy call on Kajaria Ceramics with a target price of Rs 1310. The current market price of Kajaria Ceramics is Rs 1080.4. 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 17351.65 Crore) operating in Building Materials sector.

    Kajaria Ceramics Ltd. key Products/Revenue Segments include Tiles, Other Operating Revenue and Power for the year ending 31-Mar-2021.


    Financials
    For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1016.31 Crore, down -8.34 % from last quarter Total Income of Rs 1108.78 Crore and up 79.03 % from last year same quarter Total Income of Rs 567.66 Crore. Company reported net profit after tax of Rs 92.96 Crore in latest quarter.

    Investment Rationale
    KJC guided for good demand in domestic markets. It also expects FY23 exports from India to grow by ~30%, which in turn should reduce Morbi’s supply influx in the domestic market. Amidst elevated gas prices and heavy inventory pile-up, most of the Morbi plants are taking a month-long production shutdown mid-Aug onwards. Organised players are not participating in the shutdown. Gas prices in Europe and China have spiked way ahead of India, boosting Indian manufacturers competitiveness in the export market. KJC expanded its tiles capacity by ~20% in Q1FY23 (~12 MSM) and it is acquiring a 4.8 MSM plant in Telangana to expand its reach in the south. KJC refrained from giving a margin guidance amidst erratic gas supplies in the north and rising gas prices across all its plants. It maintains earnings estimates, target price, as well as the BUY rating on the stock.

    Promoter/FII Holdings
    Promoters held 47.5 per cent stake in the company as of 30-Jun-2022, while FIIs owned 19.58 per cent, DIIs 22.4 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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