Founded 27 years ago, Kajaria Ceramics is the largest manufacturer of ceramic tiles in India having an annual aggregate capacity of 68.60 mn. Sq. Meters. It happens to be the No. 1 player in the industry with its manufacturing facilities equipped with cutting edge modern technology. With its intense automation, robotic car applications and a zero chance for human error it is undoubtedly the leader in the tiles industry. Kajaria is the only ceramic tile company in India which is conferred with “Superbrand” for 8th consecutive time.

Production Locations and Capacities:-

The manufacturing facilities are located at Sikandrabad (U.P) having a capacity of 9.80 million sq. mtr, Gailpur (Rajasthan) having a capacity of 24.50 million sq. mtr and Malootan (Rajasthan) having a capacity of 6.50 million sq. mtr, Vijayawada (A.P) having a capacity of 2.30 million sq. mtr and 5 plants in the state of Gujrat. The company has recently acquired 51% stake in Floera Ceramics which is putting up manufacturing facilty having a capacity of 5.70 million sq. mtr. which is expected to be commissioned in September 2017.

Joint Venture Agreements

It also has Joint Venture agreements with Soriso Ceramics, Jaxx Vitrified, Vennar Ceramics, Cosa Ceramics, and Taurus Tiles for manufacturing its products.

The products comprises of more than 1500 varieties in ceramic wall & floor tiles, vitrified tiles, designer tiles which come in array of colors and textures finding use in bathrooms, living rooms, corridors, study rooms and kitchen.

Kajaria Exports to over 20 countries, Canada, USA, Brazil, UK, Italy, Spain Jordan, Singapore, Australia, Mauritius, Taiwan, and Germany are some of them.

Product Range

• Ceramic Wall & Floor Tiles
• Polished Vitrified Tiles
• Glazed vitrified Tiles
• Sanitary ware & Faucets
• Tile Adhesives & Grout

Presence

The company has presence on a PAN India basis with a distribution network of about 1100 dealers catering to around 4000 associates across the country. The company also has 25 corporate offices / display centers across the country.

Dynamiclevels recommends Kajaria Ceramics as one of our Multibagger Stocks.

To get more Support and Resistance levels of the share please visit Kajaria Ceramics Share Price Forecast

Shareholding Pattern

Q4FY16 Financial Highlights (Consolidated)

• Net Revenue earnings grew by 12% to Rs. 655.12 crore in comparison to Rs. 585.23 crore in Q4 FY15
• EBITDA rose by 30% to Rs. 133.90 crore from Rs. 103.06 crore in Q4 FY15
• PAT stood higher by 28.% to Rs. 66.04 crore vis-à-vis Rs. 51.66 crore in Q4 FY15
• EPS stood at Rs. 8.31 per share vis-à-vis Rs.6.50 per share in Q4 FY15

Outlook

Indian Tile Industry

• Indian tile industry is estimated to be 756 million sq. mtr. as of March 2015
• Industry size is estimated to be Rs. 24000 crore as of March 2015.
• National Brands contribute to around 50% of industry.
• The industry has been growing at a CAGR of 12 - 13% per annum in the last 4-5 years

Conclusion

At CMP of 1075 Kajaria Ceramics is currently trading at 37.10 P/E, the company is betting big on India’s large ticket transformative Government policies, softening interest rates and declining fuel costs, one can build a long position in the stock at CMP of 1075 adding more on dips till 950 for a target of 15-20% from entry price and a stop of 850.