KA­JARIA CERAM­ICS

Dalal Street Investment Journal - - REVIEWS -

We had rec­om­mended Ka­jaria Ceram­ics in is­sue no. 8 dated March 20-April 2, 2017 un­der “Choice Scrip” sec­tion when the scrip was trad­ing at ₹ 553.65. Our rec­om­men­da­tion was backed by pos­i­tive macroe­co­nomic growth fac­tors, ex­pan­sion plans and at­trac­tive val­u­a­tions.

Ka­jaria Ceram­ics is the largest man­u­fac­turer of ce­ramic/vit­ri­fied tiles in In­dia, with an an­nual aggregate ca­pac­ity of 63.90 mn. sq. me­tres, dis­trib­uted across eight plants - Sikan­drabad in Ut­tar Pradesh, Gailpur and Malootana in Ra­jasthan, four plants in Gu­jarat and one at Vi­jayawada in Andhra Pradesh.

It is the largest ex­porter of ce­ramic tiles in In­dia, with ex­ports to over 20 coun­tries and hav­ing an ex­clu­sive of­fice/ show­room in UAE. The com­pany has an in–house re­search and de­vel­op­ment fa­cil­ity that fo­cuses on devel­op­ing new de­signs and cre­at­ing cost ef­fec­tive prod­ucts.

On the fi­nan­cial front, Ka­jaria Ceram­ics’ rev­enue in­creased 4.44 per cent to

₹ 669.00 crore in Q1FY18 from ₹ 640.55 crore in Q1FY17. How­ever, the com­pany’s PBDT de­clined 15.17 per cent to ₹ 94.78 crore in the first quar­ter of FY18 on a yearly ba­sis. The com­pany’s net profit also de­clined 20.32 per cent to ₹ 52.14 crore for the same pe­riod.

On an an­nual ba­sis, the com­pany’s rev­enue rose 11.11 per cent to ₹ 2,720.11 crore in FY17 com­pared to the pre­vi­ous fis­cal. The com­pany’s PBDT in­creased 15.55 per cent to ₹ 460.46 crore in FY17 on a yearly ba­sis. The com­pany’s net profit in­creased from ₹ 234.89 crore in FY16 to ₹ 270.16 crore in FY17.

Af­ter our rec­om­men­da­tion, the share price of Ka­jaria Ceram­ics has ap­pre­ci­ated by 34.9 per cent. We would ad­vice our reader in­vestors to BOOK PROFIT as the stock has wit­nessed good run-up from our rec­om­mended price. (Clos­ing price as on Sept 26, 2017)

Scrip’s Move­ment

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