Kajaria Ceramics Q4 Results Review - Weak Performance On Key Parameters: IDBI Capital

IDBI Capital Report

Kajaria Ceramic Ltd.’s Q4 FY24 result was below our estimates on key parameters. The company reported another quarter of weak performance on operational parameters viz sales volume and NSR, owing to muted demand.

The management guided that as export from Morbi gets streamlined, growth in sales volume for organised players would be evident. Net sales increased by mere 3% YoY to Rs 12.4 billon, while Ebitda came in at Rs 1.7 billion, declined by 2.3% YoY. The company reported net profit of Rs 1 billion, lower by 9.4% over Q4 FY23.

We have cut our net sales/profit after tax estimates by 3.7%/4% and 6.2%/7.9% respectively over FY25E/FY26E.

We believe post recent stock price correction; valuation is attractive at current level. Maintain Buy with a revised target price of Rs 1,473 (from Rs 1,600), assigning 40 times price to earnings ratio on FY26E.

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