⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
KAJARIACER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | KAJARIACER | Market Cap | 15,332 Cr. | Current Price | 963 ₹ | High / Low | 1,322 ₹ |
| Stock P/E | 43.1 | Book Value | 174 ₹ | Dividend Yield | 0.93 % | ROCE | 16.8 % |
| ROE | 10.8 % | Face Value | 1.00 ₹ | DMA 50 | 963 ₹ | DMA 200 | 1,050 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.30 % | PAT Qtr | 106 Cr. | PAT Prev Qtr | 121 Cr. |
| RSI | 52.6 | MACD | -8.49 | Volume | 8,20,877 | Avg Vol 1Wk | 5,10,261 |
| Low price | 745 ₹ | High price | 1,322 ₹ | PEG Ratio | -5.26 | Debt to equity | 0.04 |
| 52w Index | 37.8 % | Qtr Profit Var | 33.3 % | EPS | 16.2 ₹ | Industry PE | 40.2 |
📊 Core Financials
- Revenue & Profitability: PAT declined sequentially (₹121 Cr → ₹106 Cr), showing short-term weakness. EPS at ₹16.2 remains steady.
- Margins: ROCE at 16.8% and ROE at 10.8% highlight moderate efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.04 indicates very low leverage and strong financial health.
- Cash Flow: Stable operating performance supports cash generation, though margins are under pressure.
💹 Valuation Indicators
- P/E: 43.1, slightly above industry average (40.2), suggesting premium valuation.
- P/B: 5.53 (₹963 / ₹174), reflecting high market expectations.
- PEG Ratio: -5.26, distorted due to earnings slowdown, making valuation less attractive.
- Intrinsic Value: Current price ₹963 is near fair value; better entry closer to ₹745–880.
🏢 Business Model & Competitive Advantage
- Leading player in ceramic tiles with strong brand recognition.
- Diversified product portfolio catering to residential and commercial demand.
- Low debt enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹745–880 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking exposure to housing and infrastructure demand, though valuation premium warrants caution.
✅ Positive
- Debt-to-equity ratio of 0.04 ensures financial stability.
- Strong brand presence in ceramic tiles sector.
- DII holdings increased by 0.30%, showing domestic institutional confidence.
⚠️ Limitation
- Sequential PAT decline (₹121 Cr → ₹106 Cr).
- High P/E (43.1) compared to industry average (40.2).
- High P/B ratio reflects premium valuation.
- PEG ratio (-5.26) indicates distorted valuation due to earnings slowdown.
📉 Company Negative News
- Quarterly profit decline of -12.4% sequentially.
- MACD (-8.49) suggests bearish momentum.
- FII holdings decreased by 0.09%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased by 0.30%, reflecting domestic institutional support.
- Debt-free status enhances long-term stability.
- RSI at 52.6 indicates neutral momentum, avoiding overbought/oversold extremes.
🏭 Industry
- Industry P/E at 40.2, close to company’s P/E, indicating fair valuation.
- Housing and infrastructure demand remain strong, supporting sector growth.
🔎 Conclusion
- Kajaria Ceramics demonstrates moderate fundamentals with low debt and strong brand presence.
- Valuation is slightly premium compared to industry, making entry less attractive at current levels.
- Entry zone between ₹745–880 is favorable for long-term investors.
- Overall, a fundamentally stable company with growth prospects, though short-term profit weakness and valuation premium warrant caution.