Hello and welcome back to one more article wherein we would analyze Kajaria ceramics share price in the best possible way through Business, Fundamental, and Technical analysis.
So, the stock for today is Kajaria ceramics Ltd.
Now let us discuss the business features of Kajaria ceramics limited.
Kajaria Ceramics (KCL) is the 9th largest in the world with respect to its segment and is the largest manufacturer of ceramics/vitrified tiles.
The annual capacity of the company is 70.40 million square meters (MSM).
Kajaria ceramics is adopting a unique strategy / concept i, e Mock Bathroom, Kitchens and living rooms in organized retailing.
It has also pumped in Rs 25 million in Kajaria Plus Ltd thus making this marketing company of ceramic products it’s subsidiary.
The company has a wide clientele namely Unitech, DLF, Parsvanath, Magarapatta, Sobha developers, DSK, Mantri group, Prestige group, EMAAR-MGF are among others.
There are around 400 options of flooring solutions which the company manufactures. Such as wall tiles, vitrified tiles and Spanish & Italian tiles.
Kajaria ceramics was awarded the ‘Super Brand’ title.
Now, coming to the financials of the company.
The Market Capitalization of the stock is Rs 15,891 Cr.
The price to earnings ratio of the stock is 51.6 which is lesser than the industry price to earnings ratio of 55.7. There is a slight difference but indicates that the stock is undervalued and is a good pick for buying.
Kajaria ceramics has a pretty good return on capital employed of 22.1% which shows the strong financial condition the company has developed.
The return on equity is 17.2% which states the return an investor will get when a certain amount will be invested in the Kajaria ceramics share price.
The company has a debt to equity ratio of 0.07 which shows that the company is reducing its debt and can utilize the net cash flow for company expansion.
Kajaria ceramics share is also paying a healthy dividend of 30.46%.
Based on market capitalization, Kajaria ceramics stand tall at the 2nd position, operating in the Building Material Sector.
It has a great profit growth of 20.6% which definitely clears the picture of future growth.
From the last 4 quarters (Jun 2020, Sep 2020, Dec 2020, Mar 2021) the sales have increased from Rs 278 Cr to Rs 953 Cr.
The increment of operating profit from last quarter to this quarter is Rs 182 Cr to Rs 191 Cr.
The net profit was -27Cr in June 2020 quarter due to Covid pandemic situation, but it has constantly increased to Rs 127Cr in the March 2021 quarter.
The earning per share value is Rs7.99.
The expenses have drastically decreased in March 2021 from March 2020.
The share capital of the company is Rs 16 Cr from the last 5 years.
In the year 2021, the reserves have increased to Rs 1853 Cr from Rs 1698 Cr in the year 2020 which shows the massive interest of investors into the company.
Promoters have a holding of 47.54% till March 2021.
The Flls have a 25.25% holding.
The Dlls have a 14.46% holding while only 12.75% is with the public.
The company is in safe hands and their growth is outstanding.
This is a brief overview of the financials of the Kajaria ceramics Ltd which showcases the dominance in their respective market.
Now let’s deep dive into the technical aspect of the stock.
If we take a closer look at the chart in a daily timeframe, we can see that there is a cup and handle pattern formation.
The handle is formed and breakout might be achieved in a short span of time.
A target of approximately 15% can be seen to be achieved.
The Kajaria ceramics share price on 15th July 2021 is Rs. 997 which would definitely vary in the upcoming future.
The high price of the stock in the last 1 year was Rs 1005.
The above image shows the chart pattern.
This analysis is only for study purposes. The decision of buying or selling shouldn’t be taken based on this analysis. Chart patterns will vary as prices would change as per the daily fluctuations. Our intention is to share the stock information through this platform.