Kajaria Ceramics |
Higher trading kept growth intact |
BUY
CMP: Rs 80 Target Price: Rs 91
n Kajaria Ceramics’ results were in line with estimates with 20% revenue growth and 52% PAT growth
n 70bps yoy drop in EBITDA margins to 15.7% is on account of higher trading, increased by 78% yoy to Rs 1 bn
n PAT margins improved by 130bps to 6% due to lower fuel cost (switched to gas from high cost fuel) and interest charges
n With strong balance sheet (D/E <1x by FY12E) and RoE improvement to 26% and EPS CAGR of 37% (FY10-12E) we remain positive on the stock and maintain BUY
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