Check Before You Invest : Kajaria Ceramics Ltd

Snapshot

Q.1 Which industry/sub-sector does Kajaria Ceramics Ltd belong to?

Kajaria Ceramics Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.

Q.2 Is Kajaria Ceramics Ltd a good quality company?

Kajaria Ceramics Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Kajaria Ceramics Ltd undervalued or overvalued?

Kajaria Ceramics Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Kajaria Ceramics Ltd a good buy now?

Kajaria Ceramics Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd revenue growth is 1.2% for FY-2025, which is below its 5-year CAGR of 10.54%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Return on capital employed is 17.67% for FY-2025, which is below its 5-year historical median of 22.23%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Return on Asset is 9.55%, which is below its 5-year historical median of 12.45%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Return on equity is 13.08% for FY-2025, which is below its 5-year historical median of 17.29%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Cash conversion cycle is 60 days, in line with its 5-year historical median of 60 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.33	1.36
ROE	13.08	17.29
ROCE	17.67	22.23
Cash Conversion Cycle	60 days	60 days

Q.6 Gross Profit margin of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.4% for FY-2025, which is below its 5-year median of 15.7%, indicating decreasing margins.

Q.7 Operating Profit Margin of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.71% for FY-2025, which is below its 5-year median of 15.28% indicating decreasing margins.

Q.8 Net Profit Margin of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Net Profit Margin is 7.51% for FY-2025, is below with its 5-year median of 9.91%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.4	15.7
Operating Profit Margin	13.71	15.28
Net Profit Margin	7.51	9.91

Q.9 Debt to Equity ratio of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Debt-to-Equity ratio is 0.06, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Kajaria Ceramics Ltd?

Kajaria Ceramics Ltd Debt to cash flow from operations is 0.35, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kajaria Ceramics Ltd?

Promoters hold 47.69% of the Kajaria Ceramics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kajaria Ceramics Ltd vs industry peers?

Kajaria Ceramics Ltd revenue CAGR is 10.54%, compared to the industry median CAGR of 2.84%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.2	2.8
Gross Profit Growth	-11.8	9
Operating Profit Growth	-11.5	1.1
Net Profit Growth	-21.6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.33	0.57
ROE	13.08	2.84
ROCE	17.67	5.52
Cash Conversion Cycle (days)	60.09	193

Valuation & price assessment

Q.1 Stock return of Kajaria Ceramics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	8.5%	5.2%	3%	45.6%

Q.3 Valuation ratios of Kajaria Ceramics Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	39.07	48.38	24.02
Price to Book	6.19	7.36	0.90
Price to Sales	3.93	4.19	1.29
EV to EBITDA	19.98	26.06	10.79

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