Dolat Capital is bullish on Kajaria Ceramics has recommended buy rating on the stock with a target price of Rs 651 in its research report dated May 14, 2018.
Dolat Capital's research report on Kajaria Ceramics
In the last one & half year Ceramic Industry faced multiple challenges, Demonetization and GST Implementation restricted volume growth. Collective might of the Un-organized players exerted volume/pricing pressure across product range (attributed to Vibrant Ceramic expo hosted by Morbi based players in Nov’2017 & Capacity addition in GVT segment by Morbi based players). We believe volume/pricing pressure will ease for the organized players as our channel checks and management commentary suggests Morbi association is unlikely to host next edition of Vibrant Ceramic expo in the current year. Further the implementation of E-way from 1st of April 2018 will bring in relief for the organized players. However rising P&F cost remain a major concern for the industry.
OutlookWe value KJC at 30x FY20E EPS of ` 21.7, Recommend BUY with a revised TP of Rs651/share, implying an upside of 21%.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.