Buy Kajaria Ceramics, target price Rs 1310: HDFC Securities

HDFC Securities has buy call on Kajaria Ceramics with a target price of Rs 1310.The current market price of Kajaria Ceramics is Rs 1282.5.

Kajaria Ceramics, incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 20788.61 Crore) operating in Building Materials sector.

Kajaria Ceramics key Products/Revenue Segments include Tiles, Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 1215.24 Crore, up 10.62 % from last quarter Total Income of Rs 1098.61 Crore and up 9.60 % from last year same quarter Total Income of Rs 1108.78 Crore. Company has reported net profit after tax of Rs 110.77 Crore in latest quarter.

The company’s top management includes Mr.Ashok Kajaria, Mr.Chetan Kajaria, Mr.Rishi Kajaria, Mr.Dev Datt Rishi, Mr.Raj Kumar Bhargava, Mr.Debi Prasad Bagchi, Mr.H Rathnakar Hegde, Mrs.Sushmita Shekhar. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 16 Crore shares outstanding.

Investment Rationale
Strong tile exports bode well for domestic-focused players (Kajaria and Somany), as they reduce supply from Morbi in domestic markets.

Promoter/FII Holdings
Promoters held 47.49 per cent stake in the company as of 31-Mar-2023, while FIIs owned 16.89 per cent, DIIs 26.23 per cent.