Kajaria Ceramics
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Kajaria Ceramics is poised for robust growth, driven by strategic capacity expansions and a shift towards higher-value products. Management's optimistic outlook for FY27 is underpinned by the commissioning of new manufacturing facilities, which are expected to enhance throughput and profitability. The narrowing price gap with unorganized competitors is improving Kajaria's competitive position, allowing for better margin stability. Vista's forecast reflects an anticipated revenue growth of 14.6% YoY, supported by strong retail demand and institutional project sales. The company's EBITDA margins are projected to improve, targeting 18-19%, as operational efficiencies and price-led growth take effect. However, risks remain, particularly from volatile gas prices and competition in the Morbi cluster. The favorable macro environment, characterized by stable demand in the building materials sector, further supports Kajaria's growth trajectory. Over the next 12-24 months, key opportunities include expanding market share through new product lines and enhancing operational capabilities, while watchpoints include geopolitical disruptions and potential margin pressures from increased competition
Why We Like This Stock
- Strategic capacity expansions are set to enhance throughput and profitability
- Narrowing price gap with unorganized players is improving competitive positioning
- Management's focus on higher-value products is expected to drive margin stability
Things To Watch Out For
- Volatile gas prices pose a risk to margin stability
- Intensified competition in the Morbi cluster may pressure margins
- Geopolitical disruptions could impact supply chain and operational efficiency
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 4,474 | 4,635 | 4,830 | 5,387 | 6,036 |
| Profit Before Tax (Cr.) | 580 | 494 | 727 | 960 | 997 |
| PBT Margin | 13.0% | 10.7% | 1505.2% | 17.8% | 16.5% |
| Net Profit (Cr.) | 435 | 314 | 528 | 702 | 729 |
| Earnings Per Share | 26.7 | 19.4 | 33.2 | 44.2 | 45.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Goldman Sachs | ▲ Buy | 1,330 | 26-Jun-2026 |
| HDFC Securities | ▼ Reduce | 1,140 | 30-Apr-2026 |
| HSBC | ▲ Buy | 1,400 | 04-May-2026 |
| IDBI Capital | ▲ Buy | 1,459 | 03-Aug-2026 |
| Moneycontrol | ► Equalweight | nan | 04-May-2026 |
| Morgan Stanley | ► Equalweight | 1,410 | 03-Aug-2026 |
| Motilal Oswal | ▲ Buy | 1,500 | 01-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 1,403 | 03-Aug-2026 |
Company Overview
Show Company Profile
Kajaria Ceramics Limited manufactures, sells, and distributes ceramic and vitrified wall and floor tiles under the Kajaria, GresBond, and Eternity brands in India and internationally. The company operates through Tiles and Others segments. It offers ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, grestough floor tiles, tile adhesives, epoxy and unsanded grout, and tile cleaners. The company also manufactures and sells sanitary ware and faucets; and trades plywood and laminates. It serves homeowners, architects, interior designers, developers, contractors, and other sectors. Kajaria Ceramics Limited was incorporated in 1985 and is headquartered in New Delhi, India.