ICICI Securities: Kajaria Ceramics - Faster Than Estimated Recovery Priced-In

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Considering the improving demand prospects for tiles (from semi-urban and rural India in particular), Kajaria Ceramics Ltd. is poised to deliver better than expected volume/earnings recovery in the near term.Our channel checks suggest that July 2020 and August 2020 recorded 85-90% of sales in the same months last year.Faster recovery in volumes coupled with benign fuel costs, stable industry pricing and recent cost-cutting initiatives are expected to drive Ebitda margin higher than expected.Considering the growth momentum in tiles is likely to continue in the near term with metros and tier-I cities opening up post Q2 FY21, we expect Kajaria Ceramics’ volume growth to improve going forward.With the sharp run-up in the counter, the upside seems limited on the stock despite the earnings and multiple upgrade..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Kajaria Ceramics - Faster Than Estimated Recovery Priced-In

ICICI Securities: Kajaria Ceramics - Faster Than Estimated Recovery Priced-In

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