KAJARIACER - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Here’s a comprehensive breakdown of Kajaria Ceramics (KAJARIACER) — India’s leading tile manufacturer with a premium valuation and steady fundamentals 🏠🧱

📊 Core Financials Analysis

Profitability

ROE: 12.8% and ROCE: 16.8% — decent but not industry-leading; suggests moderate capital efficiency.

EPS: ₹19.7 — aligns with earnings growth, though not explosive.

Quarterly Performance

PAT up 16.9% QoQ — healthy improvement, though absolute PAT (₹111 Cr) is modest for its market cap.

Debt-to-equity: 0.10 — very low leverage, indicating strong balance sheet discipline.

Dividend Yield: 1.03% — respectable for a mid-cap consumer durable.

💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 52.8 Expensive vs. industry PE of 41.8

P/B Ratio ~6.76 High — reflects premium brand positioning

PEG Ratio -16.0 ⚠️ Negative — suggests earnings growth concerns

📌 Kajaria trades at a premium valuation, likely driven by brand strength and investor confidence, but PEG flags caution on growth sustainability.

🏭 Business Model & Competitive Advantage

Dominates the ceramic and vitrified tile segment, with strong distribution across India.

Benefits from brand equity, wide product range, and retail presence.

Faces margin pressure due to input cost volatility and sluggish real estate demand.

FII outflows (-3.24%) and DII outflows (-0.29%) suggest cautious institutional sentiment.

📉 Technical & Entry Zone Insight

Current Price: ₹1,163, above both DMA-50 (₹1,103) and DMA-200 (₹1,074) — technically bullish.

RSI: 51.9 — neutral zone.

MACD: 28.2 — positive momentum.

🎯 Suggested Entry Zone: ₹1,050–₹1,150 🧱 Support: ₹1,020–₹1,100 🔼 Resistance: ₹1,250–₹1,300

Entry near ₹1,100 could offer a balanced risk-reward setup, especially if broader housing demand picks up.

⏳ Long-Term Holding Outlook

Kajaria is a steady compounder, not a high-growth rocket.

Ideal for defensive allocation in consumer durables with a 3–5 year horizon.

Monitor: volume growth, margin trends, and export expansion.

Want to contrast it with peers like Somany Ceramics, Asian Granito, or Cera Sanitaryware to refine your portfolio? I can line up a side-by-side comparison 🧠📈.

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