BSE:500233

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Kajaria Ceramics Limited manufactures and sells ceramic and vitrified tiles under the Kajaria Eternity brand in India.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.

Share Price & News

How has Kajaria Ceramics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500233's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.7%

500233

0.8%

IN Building

1.8%

IN Market


1 Year Return

-50.8%

500233

-39.6%

IN Building

-23.7%

IN Market

Return vs Industry: 500233 underperformed the Indian Building industry which returned -39.6% over the past year.

Return vs Market: 500233 underperformed the Indian Market which returned -23.7% over the past year.


Shareholder returns

500233IndustryMarket
7 Day1.7%0.8%1.8%
30 Day-9.9%-8.6%-0.5%
90 Day-42.3%-35.8%-22.2%
1 Year-50.2%-50.8%-37.1%-39.6%-22.2%-23.7%
3 Year-52.4%-53.5%-28.1%-32.5%-12.1%-16.8%
5 Year-22.7%-25.3%25.1%12.4%4.5%-5.7%

Price Volatility Vs. Market

How volatile is Kajaria Ceramics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kajaria Ceramics undervalued compared to its fair value and its price relative to the market?

18.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500233 (₹315.8) is trading above our estimate of fair value (₹154.82)

Significantly Below Fair Value: 500233 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500233 is poor value based on its PE Ratio (18.5x) compared to the Building industry average (8.1x).

PE vs Market: 500233 is poor value based on its PE Ratio (18.5x) compared to the Indian market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 500233 is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: 500233 is overvalued based on its PB Ratio (3x) compared to the IN Building industry average (0.6x).


Next Steps

Future Growth

How is Kajaria Ceramics forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500233's forecast earnings growth (7.2% per year) is below the savings rate (7.2%).

Earnings vs Market: 500233's earnings (7.2% per year) are forecast to grow slower than the Indian market (16.8% per year).

High Growth Earnings: 500233's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500233's revenue (4.8% per year) is forecast to grow slower than the Indian market (7.2% per year).

High Growth Revenue: 500233's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500233's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has Kajaria Ceramics performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500233 has high quality earnings.

Growing Profit Margin: 500233's current net profit margins (9.1%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: 500233's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: 500233's earnings growth over the past year (20%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: 500233 earnings growth over the past year (20%) exceeded the Building industry 1.2%.


Return on Equity

High ROE: 500233's Return on Equity (15.7%) is considered low.


Next Steps

Financial Health

How is Kajaria Ceramics's financial position?


Financial Position Analysis

Short Term Liabilities: 500233's short term assets (₹11.8B) exceed its short term liabilities (₹5.8B).

Long Term Liabilities: 500233's short term assets (₹11.8B) exceed its long term liabilities (₹1.4B).


Debt to Equity History and Analysis

Debt Level: 500233's debt to equity ratio (6.1%) is considered satisfactory.

Reducing Debt: 500233's debt to equity ratio has reduced from 27.8% to 6.1% over the past 5 years.

Debt Coverage: 500233's debt is well covered by operating cash flow (319%).

Interest Coverage: 500233's interest payments on its debt are well covered by EBIT (90.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Kajaria Ceramics's current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500233's dividend (0.95%) is higher than the bottom 25% of dividend payers in the Indian market (0.86%).

High Dividend: 500233's dividend (0.95%) is low compared to the top 25% of dividend payers in the Indian market (3.7%).


Stability and Growth of Payments

Stable Dividend: 500233's dividends per share have been stable in the past 10 years.

Growing Dividend: 500233's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.5%), 500233's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500233's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.0yrs

Average board tenure


CEO

Ashok Kajaria (72yo)

9.08yrs

Tenure

₹45,154,000

Compensation

Mr. Ashok K. Kajaria, B.Sc., BSME, has been the Chairman and Joint Managing Director of Kajaria Ceramics Limited since April 1, 2011. Mr. Kajaria served as Managing Director of Kajaria Ceramics Limited. He ...


CEO Compensation Analysis

Compensation vs Market: Ashok's total compensation ($USD595.34K) is about average for companies of similar size in the Indian market ($USD479.53K).

Compensation vs Earnings: Ashok's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Ashok Kajaria
Chairman & MD9.08yrs₹45.15m1.9% 934.6m
Chetan Kajaria
Joint MD & Executive Director12.83yrs₹49.47m17.68% 8.7b
Rishi Kajaria
Joint MD & Executive Director10.83yrs₹49.47m18.54% 9.1b
Debi Bagchi
Independent Non-Executive Director12.92yrs₹400.00kno data
Raj Bhargava
Independent Non-Executive Director21.5yrs₹360.00k0.012% 5.8m
Dev Rishi
Non-Executive Director5.33yrs₹180.00k0.00039% 192.2k
Harady Hegde
Independent Non-Executive Director8.33yrs₹200.00kno data
Sushmita Singha
Independent Non-Executive Director5.17yrs₹240.00kno data

10.0yrs

Average Tenure

69yo

Average Age

Experienced Board: 500233's board of directors are considered experienced (10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kajaria Ceramics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kajaria Ceramics Limited
  • Ticker: 500233
  • Exchange: BSE
  • Founded: 1985
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: ₹49.277b
  • Shares outstanding: 158.96m
  • Website: https://www.kajariaceramics.com

Location

  • Kajaria Ceramics Limited
  • Mohan Co-operative Industrial Estate
  • J-1/B-1 (Extn.)
  • New Delhi
  • Delhi
  • 110044
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500233BSE (Mumbai Stock Exchange)INR1ININRNo data
500233BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 1995
KAJARIACERNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 1995

Biography

Kajaria Ceramics Limited manufactures and sells ceramic and vitrified tiles under the Kajaria Eternity brand in India. Its products include ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitary ware and faucets, adhesives for ceramic and vitrified tiles, and unsanded grout. The company markets its products through a network of dealers, such as Kajaria Eternity World, Kajaria Galaxy, and Kajaria Eternity Boutique chains, as well as Kajaria Prima Plus showrooms. It also exports its products to approximately 35 countries. Kajaria Ceramics Limited was incorporated in 1985 and is headquartered in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 12:55
End of Day Share Price2020/05/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.