KAJARIACER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | KAJARIACER | Market Cap | 18,916 Cr. | Current Price | 1,188 ₹ | High / Low | 1,322 ₹ |
| Stock P/E | 40.0 | Book Value | 182 ₹ | Dividend Yield | 0.76 % | ROCE | 23.1 % |
| ROE | 17.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,063 ₹ | DMA 200 | 1,059 ₹ |
| Chg in FII Hold | -1.43 % | Chg in DII Hold | 1.17 % | PAT Qtr | 146 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 63.3 | MACD | 63.4 | Volume | 14,66,007 | Avg Vol 1Wk | 7,05,580 |
| Low price | 761 ₹ | High price | 1,322 ₹ | PEG Ratio | 3.63 | Debt to equity | 0.03 |
| 52w Index | 76.0 % | Qtr Profit Var | 396 % | EPS | 28.7 ₹ | Industry PE | 37.3 |
Entry Zone: 1,060 ₹ – 1,090 ₹ (near 50 & 200 DMA support)
Exit Guidance: 1,280 ₹ – 1,300 ₹ (resistance zone)
Holding View: Suitable for medium to long-term holding with valuation caution
Positive
- Strong ROCE (23.1%) and ROE (17.2%) highlight efficient capital utilization
- Low debt-to-equity ratio (0.03) ensures financial stability
- Quarterly PAT growth (106 Cr → 146 Cr) shows robust operational performance
- EPS of 28.7 ₹ supports profitability
- DII holdings increased (+1.17%), signaling domestic institutional confidence
- Stock trading above both 50 DMA and 200 DMA indicates strong momentum
Limitation
- High P/E of 40.0 compared to industry PE of 37.3 — valuation slightly stretched
- PEG ratio of 3.63 suggests growth not keeping pace with valuation
- Decline in FII holdings (-1.43%) reflects reduced foreign investor confidence
- RSI at 63.3 nearing overbought territory
Company Negative News
- Reduced foreign institutional participation may weigh on sentiment
- Valuation premium relative to peers limits upside potential
Company Positive News
- Strong quarterly profit growth boosts investor confidence
- Domestic institutional accumulation supports long-term stability
- Technical indicators (MACD 63.4) show bullish momentum
Industry
- Industry PE at 37.3, slightly lower than Kajaria Ceramics’ 40.0 — sector valuations moderate
- Sector momentum strong with 52-week index return of 76%
Conclusion
Kajaria Ceramics demonstrates strong fundamentals with efficient capital returns, low leverage, and robust profit growth. However, stretched valuations, reduced foreign participation, and overbought technical conditions warrant caution. Entry near 1,060–1,090 ₹ offers a favorable setup, with exits around 1,280–1,300 ₹ advisable. Long-term holding remains attractive if earnings growth sustains, though valuation monitoring and institutional flows should be tracked closely.
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