Buy Kajaria Ceramics, target price Rs 1310: ICICI Direct

ICICI Direct has buy call on Kajaria Ceramics with a target price of Rs 1310. The current market price of Kajaria Ceramics is Rs 1042.15. Time period given by analyst is a year when Kajaria Ceramics price can reach defined target.


Kajaria Ceramics, incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 16614.32 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 1098.61 Crore, up 1.22 % from last quarter Total Income of Rs 1085.39 Crore and up 2.13 % from last year same quarter Total Income of Rs 1075.65 Crore. Company has reported net profit after tax of Rs 73.66 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 31-12-2022, the company has a total of 16 Crore shares outstanding.

Investment Rationale
Kajaria with a net cash balance sheet and superior brand, is a solid play on the tiles sector with expanding reach to tier 2/3 cities. With gas price easing& alternate fuel use, margin recovery is on the anvil. Thus, the brokerage has maintained its buy rating on the counter.