Kajaria Ceramics Limited: Value Pick Stock January 2021, Update
Update
Q1 FY 2023 Numbers
Kajaria Ceramics – the largest manufacturer of ceramic/vitrified tiles in India and the 8th largest in the world has presented its June quarter numbers today after market hours.
Revenues
On a consolidated basis, the company has posted revenue of INR 1008.22 Cr for the first quarter ended 30 June 2022 as compared to INR 561.66 Cr a period one year ago, registering a growth of 79.51% Y-O-Y basis. However, quarter-on-quarter revenue of the company de-grew by 8.49% (INR 1101.75 Cr for the quarter ended 31 March 2022)
Must Read: HOW THE NIFTY WILL BEHAVE IN JULY 2022
Expenses
Total expenses of the company are as follows –
INR 890.60 Cr as on 30 June 2022
INR 510.78 Cr as on 30 June 2021
INR 972.41 Cr as on 31 March 2022
EBITDA Margin
EBITDA margin for the quarter remains the same at 15 percent even though escalating inflation across all inputs and a rise in gas costs.
PAT
The Company has registered a net profit of INR 92.96 Cr for the quarter ended 30 June 2022 as compared to INR 41.46 Cr a period one year ago, jumped by 124.22% year-on-year basis. While quarter-on-quarter profit de-grew by 4.39% (INR 97.23 Cr for the last quarter)
The EPS of the Company are as follows –
INR 5.80 as on 30 June 2022
INR 2.71 as on 30 June 2021
INR 6.02 as on 31 March 2022
Also Read: IMPORTANT Q1 RESULTS FOR THE WEEK – 18 TO 24 JULY ’22
Chairman’s Message –
We are very pleased with our first quarter performance, which again demonstrated the power of sustainable business against a backdrop of geopolitical volatility and high commodity prices.
We got off to a great start this fiscal year, generating INR 1,008 Cr in revenue. Coming off a strong finish to FY22 last quarter, this is now our seventh straight quarter delivering double-digit revenue growth.
The industry’s demand scenario continues to be healthy given traction in the real estate sector despite high input costs and increasing interest rates. At present we are witnessing a greater momentum in tier II and below markets vs the metros. Also, the recent correction in commodity prices and the forecast of a good monsoon are encouraging.
Daily Chart –
The share of kajaria ceramics ends at INR 1082, up more than 8% on the National Stock Exchange with traded volume of 7,96,184 shares.
The stock is currently trading 21% below when compared to its 52-week high of INR 1374.90.
Kajaria Ceramics is a value pick stock of Finblab (52% Returns in 18 months) and is maintaining a BULLISH view on the company.
Also Read: Q1 Results of Meghmani Finechem Ltd
6 January 2021
Kajaria Ceramics Limited, also known as “KCL” is the largest producer of ceramic tiles and vitrified tiles in India. It manufactures, outsources, and trades ceramic tiles (vitrified tiles) under its brand name, Kajaria.
Kajaria Ceramics: History
Kajaria Ceramics Limited was incorporated on the year 1985.
The Company came out with a public issue (IPO) in September 1988 to set up a factory at Sikandrabad (Uttar-Pradesh), and the commercial production of this unit is started in August 1988.
Kajaria has from that point forward grown stronger with its innovations, hard work, and support from its shrewd clients.
In addition, KCL sells “sanitary ware” marketed under the Kerovit brand.
It also ventured into the business of Plywood in the year 2018.
Kajaria Ceramics: Business & Products
The Company’s product portfolio can be divided as following –
- Glazed Vitrified Tiles – Glazed vitrified tiles have high flexural and are therefore durable. These tiles look stylishly, engaging, and great regardless of the area where it is installed. It is considered as one of the best tile options that give benefits like (1) high durability, (2) low porosity, (3) strength, and (4) resistance to stains.
- Ceramic Tiles – Ceramic tile is one of the best tile options that work well with every space in an office or home. Its flooring is very easy to maintain. Dirt, Stains, and liquids stay on the surface which is easily cleaned or wiped away.
- Double Charge Vitrified Polished Tiles – The Company’s exquisite range of double charge vitrified tiles has the ability to enthral one’s senses. Each tile is made using best materials through latest nano-technology and refined with shine using supreme polishing technology that gives the tile a shimmering, mirror like finish.
The Company has increased its capacity from 1 mn. sq. mtrs to 73 mn. sq. mtrs. It offers more than 2800 options in ceramic wall and floor tiles, vitrified tiles, designer tiles and much more.
These tiles come in a wide range of colours and textures to complement bathrooms, corridors, living rooms, study rooms & kitchen.
Manufacturing Plants
Kajaria Ceramics has an annual aggregate capacity of 73 mn. sq. meters, distributed across 8 manufacturing plants –
(1) Sikandrabad (Uttar Pradesh),
(2) Gailpur and (3) Malootana (Rajasthan),
(4) Vijayawada and (5) Srikalahasti (Andhra Pradesh), and
(6) three plants in Morbi (Gujarat).
The Company’s manufacturing units are furnished with cutting edge modern technology.
It is intense automation, robotic car application, and a zero chance for human error make Kajaria to be the number 1 in the industry.
Kajaria Ceramics: Global Presence
Kajaria Ceramics exports to more than 35 countries across the Globe. The International Marketing tasks are coordinated by an expert fare division that deals with a network of international distributors and agents.
Listed On:
The share of kajaria Ceramics is presently listed at Bombay Stock Exchange (BSE); CODE 500233 and National Stock Exchange (NSE) as KAJARIACER
Stock Info: Kajaria Ceramics
Share Holding Pattern
Financials
Capital Reserves and Surplus: INR 956 Cr (2016), INR 1160 Cr (2017), INR 1335 Cr (2018), INR 1559 Cr (2019), INR 1698 Cr (2020)
Sales Turnover: INR 2409 Cr (2016), INR 2549 Cr (2017), INR 2711 Cr (2018), INR 2956 Cr (2019), INR 2808 Cr (2020)
Net Profit: INR 234 Cr (2016), INR 254 Cr (2017), INR 229 Cr (2018), INR 229 Cr (2019), INR 254 Cr (2020)
Dividend: INR 3/share (2017), INR 3/share (2018), INR 3/share (2019), INR 10/share (2020)
Conclusion
Kajaria Ceramics Ltd is the largest manufacturer of ceramic and vitrified tiles in India and the 9th largest producer in the world.
Promoters of the company are having more than 47% stake with 0 percent pledge shares.
Along with this, some of the top institutions like Government Pension Fund Global, Smallcap World Fund, JP MORGAN Funds, Kotak Debt Hybrid Fund, Mirae Asset Large Cap Fund, UTI Small Cap Fund is having more than 1% stake in the company.
Kajaria Ceramics Consolidated Numbers for December 2020 are Net Sales at INR 838.32 Cr in December 2020 up 13.09% from INR 741.30 Cr in December 2019 while Quarterly Net Profit INR 118.94 Cr in December 2020 up 93.27% from INr 61.54 Cr in December 2019.
On the technical front, Kajaria Ceramics Ltd share price is trading well above its 50 EMA (686) and 200 EMA (495) on the daily chart.
Keeping the above-listed factors in mind, Kajaria Ceramics looks good at INR 710. Finblab recommends investing in the stock in a staggered manner for the medium to the long haul.
Value Pick Stock: November 2020
L&T Technology Services Ltd
Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I (Vishal Dalwadi) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.
