KAJARIA CERAMICS SHARE: TARGET ACHIEVED!!!

Hello and welcome back to one more interesting article wherein we’ll discuss Kajaria ceramics share which was analysed earlier and has achieved the target predicted by us in a span of 46 trading sessions.

Let’s check the parameters which helped Kajaria ceramics share to achieve its total target of 37% approximately in 64 trading sessions.

BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT

Kajaria Ceramics are confident that they would add a turnover of ₹ 300 Cr revenue from sanitaryware and have a target of achieving ₹ 500 Cr in next 2 years.

The company expects an increase of 20% revenue and 15% volume growth in the upcoming future.

By 2026, Ceramic Tiles market would increase till USD 82.83 Billion which is a great sign for Kajaria Ceramics share.

The tiles business of the company contributed a revenue of ₹ 519 Cr which is almost double from the previous year.

The bathware and plywood business had contributed around ₹ 42 Cr for overall growth of the company.

Expansion of its existing vitrified tile manufacturing plant by 12 million square metres (msm) from its existing total capacity of 70.4 msm.

Investment of ₹ 250 Cr has been done by the company in Gailpur and Jaxx plant in Gujarat as well as in Srikalahasti plant in Andhra.

Another investment which the board of Kajaria Ceramics have approved is regarding the equity shares of and entity (i.e. Special purpose vehicle) to be produced by CleanMax Enviro Energy solutions for solar power captive consumption and the amount is around ₹ 2.64 Cr.

Important positives of Kajaria Ceramics are:

1.    Housing revival.

2.    Market leadership.

3.    Margin focus.

4.    Market share gains.

Till 2028, the Indian ceramic sanitaryware market size is expected to reach a CAGR of 9.62%.

The board of directors of the company have agreed on investing upto ₹ 5 Cr to establish a wholly-owned subsidiary company in UAE.

FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT

QUARTERLY RESULTS:   

Figures in Rs. Crores

Quarterly ResultsMar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021
Sales 815700715741652278713838953562974
Expenses 692594609630559285569657762481793
Operating Profit12310610511193-814418219180180
OPM %0.150.150.150.150.14-0.030.20.220.20.140.19
Other Income55757356767
Interest35555323333
Depreciation2226262828252728272728
Profit before tax10381818467-3411915816957157
Tax %0.350.38-0.150.270.270.020.250.230.220.270.24
Net Profit6651936250-278911912743116
EPS in Rs4.153.215.863.873.12-1.75.617.487.992.717.3

For the quarter ended 30-09-2021, the company reported a sales of ₹ 974 Cr which is an increase of 27% from the sales registered in the year ago period.

Expense has increased from the previous quarter, but the company is utilising it for the growth in sales which is evident from the sales results.

 In the quarter ended 30-09-21, the net profit increased drastically from ₹ 43 Cr to ₹ 116 Cr.

BALANCE SHEET:

Reserves have increased exponentially and there is a great interest shown by the investors in Kajaria Ceramics share.

In the quarter ended 30-09-21, the borrowings have gradually reduced which is a positive sign for the company.

Figures in Rs. Crores

Balance SheetMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Sep 2021
Share Capital 1515151616161616161616
Reserves267346489725956115913341559169818532016
Borrowings278320236243294213170120166126118
Other Liabilities 331367435575653652620677557530576
Total Liabilities8911048117615591918204021402372243725252725
Fixed Assets 5216206928601121117711451078119511921167
CWIP284178881893271529
Investments000000001055
Other Assets 3684204436217908549771200120613131525
Total Assets8911048117615591918204021402372243725252725

SHARE HOLDING SYNOPSIS

Share HoldingMar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021
Promoters 47.5847.5847.5847.5847.5847.5847.5847.5447.5447.5447.51
FIIs 25.9626.0126.2223.9723.1421.8623.3123.6825.2525.0924.89
DIIs 10.3110.2410.0613.0114.8916.9816.7215.3314.4614.8915.24
Government 0.430.430.430.430.430.430.430.43000
Public 15.7315.7515.7115.0113.9713.1511.9713.0312.7512.4812.36

Promoters have maintained their position in this stock with an average % of 47.51.

DIIs have increased their stake in this company, but the retail investors are reducing their interest in the stock which is not a sign of great concern.

Now, let’s deep dive into the technicalities of Kajaria Ceramics share.

CHART PATTERN ANALYSIS

During the previous analysis we did highlight the formation of the cup and handle pattern.  

Click here for previous analysis on Kajaria Ceramics share.

Kajaria Ceramics share did achieve its target of ₹ 1,163 and rallied till ₹ 1,355 showcasing a target achievement of 37%.

DISCLAIMER: Click here

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