ICICI Direct recommended hold rating on Kajaria Ceramics with a target price of Rs 515 in its research report dated July 24, 2019.
ICICI Direct's research report on Kajaria Ceramics
Kajaria’s sales volumes grew 9.6% YoY to 19.64 MSM in Q1FY20. Topline grew 6.5% YoY to Rs 700.0 crore. EBITDA margin was flattish QoQ at 15.1%. PAT grew 11.9% YoY to Rs 51.0 crore on account of lower–than-expected operating performance and higher depreciation & interest expenses (Kajaria adopted Ind-As 116 for lease rental accounting, effective April 1, 2019).
Outlook
We downgrade the stock to HOLD with a target price of Rs 515/share (25x FY21E EPS).
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