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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Kajaria Ceramics
Reco: BUY
CMP: Rs 170
Target Price: Rs 225
Acquires stake in Vennar Ceramics- in Southern India
· Kajaria acquires 51% stake in Vennar Ceramics (for Rs 136.5mn), which is putting a 2.3mn sqm plant for manufacturing high end ceramic wall tiles in Andhra Pradesh
· This 3rd acquisition in last twelve months has increased Kajaria’s total capacity to 38.3 mn sqm and acquired capacity contributes 26% of total manufacturing capacity
· Though expensive compared to its earlier acquisitions this plant will meet the demand from southern region and help it to reduce the transportation cost and working capital
· With Kajaria’s aggressive inorganic growth and momentum in earnings coupled with sustained RoE we reiterate our Buy rating with target of Rs 225
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