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Kajaria Ceramics Ltd. Stock Analysis

Mid Cap
Evaluated by 3211 users | BSE: 500233 | NSE: KAJARIACER |
Ceramics/Marble/Granite/Sanitaryware
Kajaria Ceramics, incorporated in 1985, is the largest ceramic floor and wall tile manufacturer in India. The company's two manufacturing facilities are located at Sikandrabad in Uttar Pradesh and Gailpur in Rajasthan. Kajaria Ceramics has increased its capacity from 1 mn. sq. mtrs to 46.60...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Kajaria Ceramics Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 16.6%21.49%21.65%20.31%21.29%21.66%19.75%16.5%14.58%14.69%
Value Creation Index 0.280.650.670.560.640.670.520.270.12NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9531,3131,5831,8362,1872,4132,5502,7112,9562,808
Y-o-Y Gr. Rt.-37.7%20.6%16%19.1%10.4%5.6%6.3%9.1%-5%
Adjusted EPS (Rs.) 4.25.577.198.2611.1214.7515.9414.7814.6716.08
Y-o-Y Gr. Rt.-32.6%29.1%14.9%34.6%32.6%8.1%-7.3%-0.7%9.6%
Book Value per Share (Rs.) 15.1219.1724.5233.3446.6360.9473.7884.4798.61107.47
Adjusted Net Profit 61.781.9106125177235253235233256
Net Op. Cash Flow (Rs. Cr.) 15990.997.6166180316338238317224
Debt to Cash Flow from Ops 1.813.063.281.421.350.930.630.720.380.57
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Kajaria Ceramics Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 12.8%5.1%3.3%-5%
Adjusted EPS 16.1%7.7%0.3%9.6%
Book Value per Share 24.418.213.49
Share Price 29.4% 5.7% -6.3% 4.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 33.8232.4732.928.0427.8327.3823.618.615.9415.54
Operating Profit Margin (%) 15.7815.8315.6215.6116.2519.1419.6216.8815.3914.86
Net Profit Margin (%) 6.486.316.897.198.519.919.988.437.969.04
Debt to Equity 1.290.990.890.470.330.30.180.130.080.08
Working Capital Days 10293898689105107111113125
Cash Conversion Cycle 28152427283037647380
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 47.58%
Institutions 40.03%
Non-Institutions 11.97%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Kajaria Ceramics Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Kajaria Ceramics Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Kajaria Ceramics Ltd.'s performance infers:

Kajaria Ceramics Ltd. earnings have grown by 7.7%, whereas share price has appreciated 5.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Kajaria Ceramics Ltd. share prices over the last 10 years. Here is what we found out:

Kajaria Ceramics Ltd. share price has appreciated 31.5% annually over the past ten years.

Kajaria Ceramics, incorporated in 1985, is the largest ceramic floor and wall tile manufacturer in India. The company's two manufacturing facilities are located at Sikandrabad in Uttar Pradesh and Gailpur in Rajasthan. Kajaria Ceramics has increased its capacity from 1 mn. sq. mtrs to 46.60 mn. sq. mtrs. in last 25 years and offers more than 1200 options in ceramic wall & floor tiles, vitrified tiles, designer tiles and much more. These tiles come in a wide range of colours and textures

Kajaria Ceramics, incorporated in 1985, is the largest ceramic floor and wall tile manufacturer in India. The company's two manufacturing facilities are located at Sikandrabad in Uttar Pradesh and Gailpur in Rajasthan. Kajaria Ceramics has increased its capacity from 1 mn. sq. mtrs to 46.60 mn. sq. mtrs. in last 25 years and offers more than 1200 options in ceramic wall & floor tiles, vitrified tiles, designer tiles and much more. These tiles come in a wide range of colours and textures to complement bathrooms, living rooms, corridors, study rooms & kitchen, born our of an inspired creativity of those who feel that rooms should be an extension of the beauty reflected. With an unparalleled commitment towards quality we have strived to adopt technologies and standards with the changing times

The company has an in-house research and development facility that focuses on developing new designs and creating cost effective products.

Kajaria Ceramics has received various certifications such as ISO 9001 (for quality management), ISO 14001 (environment management), OHSAS 18001 (for safety and health management) and SA-8000 (for commitment to society). Kajaria Ceramics has pan-India presence with a strong distribution network of about 600 dealers and over 6000 sub-dealers. Equipped with eight stock points, the company has Kajaria World showrooms and owns 19 offices-cum-display centres.

Being largest exporter of ceramic tiles in India, Kajaria Ceramics exports its products to over 20 countries and has an exclusive office/showroom in UAE.

The company has wide clientele namely Unitech, DLF, Parsvnath, Magarpatta, Sobha Developers, DSK, Mantri Group,Prestige Group, Ansals, Hiranandani, Raheja Developers, Omaxe and EMAAR-MGF are among others.

In 2010 Kajaria Ceramics entered into an agreement with Gas Authority of India Ltd.

Products

The company manufactures more than 400 options of flooring solutions such as wall tiles, Ffloor tiles, vitrified tiles and Spanish and Italian tiles

The tiles major markets these products under the brand name such as Kajaria, Kerrogres, Eternity, Aparici, Saloni ceramica, Ergon and GRESPANIA Ceramica.

Awards

Kajaria Ceramics was awarded the 'Super Brand' Title. Kajaria became the only ceramics tile company who have won the status of consumers 'Super Brand”.

The Superbrand is considered the Oscars of branding in India, which the company proudly bagged for seventh consecutive years, 2004-06, 2006-07, 2008, 2009-10, 2010-11, 2011-12 and 2013-14.

Kajaria, is the only Indian Tile company to receive the revered "Asia's Most Promising Brand" award in the Premium Tiles category.

The company received the President's Award for achieving the highest exports in the industry.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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