Sharekhan has given Buy recommendation for Kajaria Ceramics with a target price of Rs. 1469 in its research report issued on Oct 22, 2021
Sharekhan’s research report on Kajaria Ceramics
Kajaria reported strong outperformance across parameters for Q2FY2022 led by strong volume growth in tiles, price hikes and benefiting from relatively lower gas prices compared to Morbi cluster. The management is confident of achieving 15% y-o-y volume and 20% y-o-y revenue growth in tiles for H2FY2022. It’s eyeing OPM of over 18% supported by pass-through of rising input costs. Brownfield capex plan of Rs. 275 crore is on track. Strong net cash position and healthy FCF generation would aid capex plans without leveraging balance sheet.
We retain a Buy on Kajaria Ceramics with a revised PT of Rs. 1469, factoring higher estimates for FY2022-FY2024.