KAJARIACER - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

📉 Kajaria Ceramics is fundamentally strong with improving earnings, but technical weakness and institutional outflows suggest a cautious swing setup.

🎯 Optimal Entry Price: ₹1,150–₹1,165

🚪 Exit Target (if already holding): ₹1,200–₹1,225

🔍 Positive

• 📈 ROCE of 16.8% and ROE of 10.8% reflect solid operational efficiency.
• 📈 Debt-to-equity ratio of 0.04 indicates a strong balance sheet with minimal leverage.
• 📈 Quarterly PAT growth from ₹99.7 Cr to ₹121 Cr shows improving profitability.
• 📈 EPS of ₹15.4 supports valuation strength.
• 📈 Volume above weekly average (2.77L vs 1.90L), indicating rising interest.

⚠️ Limitation

• 📉 P/E of 56.3 is significantly above industry average (43.3), suggesting overvaluation.
• 📉 MACD at -6.53 indicates bearish momentum.
• 📉 RSI at 35.0 suggests oversold conditions but weak momentum.
• 📉 Price below 50 DMA (₹1,209), showing short-term resistance.
• 📉 PEG ratio of -6.88 implies poor growth-adjusted valuation.

📉 Company Negative News

• 📉 FII holding declined by 0.98% and DII by 1.39%, reflecting cautious institutional sentiment.

📈 Company Positive News

• 📈 PAT grew 30% QoQ, driven by strong demand in premium tiles and cost optimization.
• 📈 Expansion into value-added products and export markets expected to support margins.

🏠 Industry

• 🏠 Building materials and ceramics sector benefits from real estate recovery and infrastructure push.
• 📉 Risks include input cost inflation and competitive pricing pressure.

✅ Conclusion

• 📉 Kajaria Ceramics is moderately suitable for swing trading due to strong fundamentals and earnings growth.
• 🎯 Entry near ₹1,150–₹1,165 with exit around ₹1,200–₹1,225 is recommended for short-term traders.
• 📊 Long-term investors should monitor margin trends and institutional flows for sustained upside.

Would you like me to compare Kajaria Ceramics with Somany Ceramics or Cera Sanitaryware for a broader swing trade perspective?