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.
Table of Contents
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 Results | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
| Sales | 815 | 700 | 715 | 741 | 652 | 278 | 713 | 838 | 953 | 562 | 974 |
| Expenses | 692 | 594 | 609 | 630 | 559 | 285 | 569 | 657 | 762 | 481 | 793 |
| Operating Profit | 123 | 106 | 105 | 111 | 93 | -8 | 144 | 182 | 191 | 80 | 180 |
| OPM % | 0.15 | 0.15 | 0.15 | 0.15 | 0.14 | -0.03 | 0.2 | 0.22 | 0.2 | 0.14 | 0.19 |
| Other Income | 5 | 5 | 7 | 5 | 7 | 3 | 5 | 6 | 7 | 6 | 7 |
| Interest | 3 | 5 | 5 | 5 | 5 | 3 | 2 | 3 | 3 | 3 | 3 |
| Depreciation | 22 | 26 | 26 | 28 | 28 | 25 | 27 | 28 | 27 | 27 | 28 |
| Profit before tax | 103 | 81 | 81 | 84 | 67 | -34 | 119 | 158 | 169 | 57 | 157 |
| Tax % | 0.35 | 0.38 | -0.15 | 0.27 | 0.27 | 0.02 | 0.25 | 0.23 | 0.22 | 0.27 | 0.24 |
| Net Profit | 66 | 51 | 93 | 62 | 50 | -27 | 89 | 119 | 127 | 43 | 116 |
| EPS in Rs | 4.15 | 3.21 | 5.86 | 3.87 | 3.12 | -1.7 | 5.61 | 7.48 | 7.99 | 2.71 | 7.3 |
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 Sheet | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Sep 2021 |
| Share Capital | 15 | 15 | 15 | 16 | 16 | 16 | 16 | 16 | 16 | 16 | 16 |
| Reserves | 267 | 346 | 489 | 725 | 956 | 1159 | 1334 | 1559 | 1698 | 1853 | 2016 |
| Borrowings | 278 | 320 | 236 | 243 | 294 | 213 | 170 | 120 | 166 | 126 | 118 |
| Other Liabilities | 331 | 367 | 435 | 575 | 653 | 652 | 620 | 677 | 557 | 530 | 576 |
| Total Liabilities | 891 | 1048 | 1176 | 1559 | 1918 | 2040 | 2140 | 2372 | 2437 | 2525 | 2725 |
| Fixed Assets | 521 | 620 | 692 | 860 | 1121 | 1177 | 1145 | 1078 | 1195 | 1192 | 1167 |
| CWIP | 2 | 8 | 41 | 78 | 8 | 8 | 18 | 93 | 27 | 15 | 29 |
| Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10 | 5 | 5 |
| Other Assets | 368 | 420 | 443 | 621 | 790 | 854 | 977 | 1200 | 1206 | 1313 | 1525 |
| Total Assets | 891 | 1048 | 1176 | 1559 | 1918 | 2040 | 2140 | 2372 | 2437 | 2525 | 2725 |
SHARE HOLDING SYNOPSIS
| Share Holding | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | Mar 2021 | Jun 2021 | Sep 2021 |
| Promoters | 47.58 | 47.58 | 47.58 | 47.58 | 47.58 | 47.58 | 47.58 | 47.54 | 47.54 | 47.54 | 47.51 |
| FIIs | 25.96 | 26.01 | 26.22 | 23.97 | 23.14 | 21.86 | 23.31 | 23.68 | 25.25 | 25.09 | 24.89 |
| DIIs | 10.31 | 10.24 | 10.06 | 13.01 | 14.89 | 16.98 | 16.72 | 15.33 | 14.46 | 14.89 | 15.24 |
| Government | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | 0 | 0 | 0 |
| Public | 15.73 | 15.75 | 15.71 | 15.01 | 13.97 | 13.15 | 11.97 | 13.03 | 12.75 | 12.48 | 12.36 |
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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