KAJARIACER - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials & Profitability

Profit Growth: PAT rose to ₹99.7 Cr from ₹29.4 Cr QoQ — a strong rebound, with a 15.1% YoY growth.

Return Metrics

ROE: 10.8% and ROCE: 16.8% — solid, though not industry-leading.

EPS: ₹13.6 — decent for a ₹1,219 stock, but valuation remains stretched.

Debt Profile: Debt-to-equity at 0.04 — virtually debt-free, a major strength in a cyclical sector.

Dividend Yield: 0.74% — modest, with a ₹4/share dividend due on 12 Sep 2025

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💸 Valuation Indicators

Metric Value Insight

P/E Ratio 64.4 Richly valued vs. industry PE of 46.4.

P/B Ratio ~7.43 Expensive relative to book value ₹164.

PEG Ratio −7.87 Negative PEG suggests unreliable growth forecast or earnings compression.

🔍 Conclusion: Valuation is elevated, and PEG ratio flags caution. However, strong fundamentals and low debt justify premium pricing.

🏠 Business Model & Competitive Edge

Core Operations: Kajaria Ceramics is India’s largest tile manufacturer, with a diversified portfolio in ceramic, vitrified, bathware, and laminates.

Strategic Strengths

Strong brand recall and pan-India distribution.

High operating leverage and consistent margin profile.

CAGR of 18.5% in market cap over 28 years

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Growth Outlook

Analysts forecast a 1-year price target of ₹1,257, implying ~3% upside

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Financial strength score: 50/100; valuation score: 31/100 — moderate quality, slightly expensive.

📉 Technicals & Entry Zone

RSI: 46.7 — neutral, no strong momentum.

MACD: 0.65 — mildly bullish.

DMA Levels: Price near 50-DMA and above 200-DMA — consolidation zone.

📌 Suggested Entry Zone: ₹1,180–₹1,210 — near 50-DMA, offering a better margin of safety.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, brand leadership, and low debt support long-term value.

Buy on Dips: Prefer entry below ₹1,200, especially if RSI dips below 45.

Monitor: Margin trends, real estate demand, and export volumes.

You can explore Kajaria’s market cap history and valuation trajectory or Trendlyne’s analyst targets and dividend details for deeper insights. Let me know if you'd like a peer comparison with Somany Ceramics or Cera Sanitaryware next.

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trendlyne.com

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stockanalysis.com

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