Girish Pai

Nirmal Bang

Equity Bottom-Up

<p>3QFY21 Result Update</p>
<h2>Kajaria Ceramics</h2>
<h3>Strong volume growth, cost reduction drives profit</h3>
<p>We were pleasantly surprised by the continued strong growth in sales volume, which was up 11% YoY despite the impact of Covid-19. The strong growth in sales volume was driven by the company’s increased market share in India as Morbi producers remained focused on exports. Exports to USA have been increasingly lucrative.</p>
<p>Kajaraia Ceramics (KCL) reported revenue of Rs8,383mn in 3QFY21, up by 13% YoY. Revenue…</p>

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<p>2QFY21 Result Update</p>
<h2>Kajaria Ceramics</h2>
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<h3>Strong volume growth drives profits</h3>
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<p>We are pleasantly surprised by the strong growth in sales volume in 2QFY21, which was equal to the sales volume in 2QFY20 despite the impact of Covid-19. The strong growth in sales volume was driven by the increased market share as Morbi producers are focusing more on exports. Exports to USA have been increasing due to sanctions against China, which was among the largest exporter of tiles to USA.</p>
<p>KCL reported…</p>
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<p>Initiating Coverage</p>
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<h2>Kajaria Ceramics: Floored</h2>
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<p>We initiate coverage on Kajaria Ceramics (KCL) with an Accumulate, driven by attractive valuation, expected strong earnings growth from FY22 post recovery from Covid impact, comfortable balance sheet and strong cash flow. This is supported by high product quality, wide product range, robust distribution network, strong brand recall and high market share. The steep decline in KCL stock price by 26.7% from its 52 week high primarily highlights…</p>
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India

Kajaria Ceramics Limited manufactures glazed and unglazed ceramic tiles. The Company sells its products in India and it also exports them to other countries.

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