Buy Kajaria Ceramics, target price Rs 1000: ICICI Securities

Buy Kajaria Ceramics, target price Rs 1000:  ICICI Securities

ICICI Securities has buy call on Kajaria Ceramics with a target price of Rs 1000. The current market price of Kajaria Ceramics Ltd. is Rs 828.5.

Kajaria Ceramics Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 13250.65 Crore) operating in Building Materials sector.

For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 838.32 Crore, up 17.66 % from last quarter Sales of Rs 712.51 Crore and up 13.09 % from last year same quarter Sales of Rs 741.30 Crore Company reported net profit after tax of Rs 121.03 Crore in latest quarter.

Investment Rationale
With the industry tailwinds (demand and pricing) likely to sustain for branded ceramic tile players, the brokerage expects the double-digit volume growth (management guidance of 20-25% in FY22 and >15% in FY23/FY24) and healthy margins (guidance of about 20%) to sustain in the near-to-medium term.

Promoter/FII Holdings
Promoters held 47.5 per cent stake in the company as of Dec 30, 2020, while FIIs held 17.7 per cent, DIIs 14.7 per cent and public and others 13.5 per cent.

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