Kajaria Ceramics Ltd

About

Kajaria Ceramics Ltd is the largest manufacturer of ceramic/vitrified tiles in India. It manufactures, outsources and trades ceramic and vitrified tiles (under its brand name, Kajaria). In addition, KCL sells sanitaryware marketed under the Kerovit brand. It also ventured into the business of Plywood in the year 2018. The company’s manufacturing facilities are located at Sikanderabad (UP), Gailpur (Rajasthan) and Malootana (Rajasthan) and Srikalahasti (Andhra Pradesh) and have an aggregate capacity of 49.2 MSMPA (million sq. meter). In addition, the company has 21.2 MSMPA capacity under various subsidiaries/joint ventures, which takes the cumulative capacity to 70.4 million sq. meters. [1] [2]

Key Points

Diversification
The company diversified its business interests and entered the Sanitaryware business in 2017 and the Plywood business in 2018.
Presently, It has a sanitaryware plant in Morbi, Gujarat and a faucet manufacturing facility in Gailpur, Rajasthan. The capacity of the sanitaryware plant is 7.5 lakh pieces and that of the faucet plant is 1 million pieces.
For its Plywood business, It adopted an asset light model and tied-up with un-organised & semi-organised manufacturers in various parts of India. [1]

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  • Market Cap 17,917 Cr.
  • Current Price 1,126
  • High / Low 1,358 / 650
  • Stock P/E 48.7
  • Book Value 128
  • Dividend Yield 0.89 %
  • ROCE 22.2 %
  • ROE 16.8 %
  • Face Value 1.00

Pros

  • Company has reduced debt.
  • Company is almost debt free.
  • Company is expected to give good quarter
  • Company has been maintaining a healthy dividend payout of 29.74%

Cons

  • Stock is trading at 8.82 times its book value
  • The company has delivered a poor sales growth of 0.65% over past five years.
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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
700 734 640 651 678 603 258 650 756 859 500 862
594 625 542 554 579 520 248 529 608 705 430 716
Operating Profit 106 109 98 97 98 83 9 121 148 154 69 146
OPM % 15% 15% 15% 15% 14% 14% 4% 19% 20% 18% 14% 17%
Other Income 9 11 11 13 12 14 10 12 15 15 13 15
Interest 1 0 2 2 2 2 1 1 1 1 1 1
Depreciation 16 16 19 20 20 20 17 19 19 19 18 20
Profit before tax 99 104 87 88 89 75 1 113 142 149 63 140
Tax % 34% 34% 35% -14% 26% 26% 26% 26% 26% 25% 26% 26%
Net Profit 66 68 57 100 66 55 1 84 106 112 47 104
EPS in Rs 4.13 4.30 3.58 6.32 4.16 3.48 0.03 5.27 6.65 7.02 2.94 6.53

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
736 953 1,313 1,590 1,882 2,233 2,443 2,528 2,581 2,726 2,572 2,523 2,977
620 803 1,111 1,367 1,644 1,946 2,055 2,085 2,152 2,321 2,194 2,089 2,460
Operating Profit 116 150 202 224 239 287 388 443 429 405 378 434 518
OPM % 16% 16% 15% 14% 13% 13% 16% 18% 17% 15% 15% 17% 17%
Other Income 5 -1 -0 -1 1 1 21 21 19 34 49 50 57
Interest 42 30 47 36 26 6 7 4 4 3 9 5 5
Depreciation 27 30 37 38 36 39 47 53 62 63 79 74 76
Profit before tax 51 89 118 148 177 243 355 407 382 373 339 406 494
Tax % 30% 32% 31% 32% 34% 31% 33% 34% 34% 34% 18% 26%
Net Profit 36 61 81 101 117 168 237 270 252 246 279 302 368
EPS in Rs 2.44 4.13 5.49 6.84 7.72 10.60 14.92 17.00 15.87 15.47 17.54 18.97 23.14
Dividend Payout % 21% 24% 23% 22% 23% 19% 17% 18% 19% 19% 17% 53%
Compounded Sales Growth
10 Years: 10%
5 Years: 1%
3 Years: -1%
TTM: 36%
Compounded Profit Growth
10 Years: 17%
5 Years: 5%
3 Years: 6%
TTM: 79%
Stock Price CAGR
10 Years: 36%
5 Years: 16%
3 Years: 37%
1 Year: 68%
Return on Equity
10 Years: 21%
5 Years: 19%
3 Years: 17%
Last Year: 17%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
15 15 15 15 15 16 16 16 16 16 16 16 16
Reserves 175 208 267 342 477 706 940 1,164 1,361 1,550 1,714 1,862 2,016
Borrowings 263 204 242 216 89 81 43 11 12 10 76 33 34
196 369 311 313 371 392 460 469 443 472 389 397 408
Total Liabilities 648 796 834 886 952 1,195 1,460 1,659 1,831 2,047 2,195 2,308 2,474
345 479 469 465 504 514 663 719 745 709 694 688 674
CWIP 3 0 2 7 12 4 6 5 1 0 9 9 6
Investments 3 9 12 37 45 79 109 109 116 117 134 129 129
298 308 351 377 391 598 683 827 969 1,221 1,358 1,481 1,666
Total Assets 648 796 834 886 952 1,195 1,460 1,659 1,831 2,047 2,195 2,308 2,474

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
108 158 78 87 149 9 305 262 199 291 235 452
-47 -168 -33 -65 -88 -70 -215 -135 -114 -285 -139 -245
-64 8 -42 -26 -60 63 -91 -84 -57 -63 -104 -202
Net Cash Flow -3 -2 3 -3 1 2 -2 44 28 -57 -7 5

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 38 35 32 31 31 31 38 44 58 55 49 54
Inventory Days 142 109 101 80 51 62 59 65 76 83 95 58
Days Payable 104 120 97 70 49 55 62 57 56 68 53 51
Cash Conversion Cycle 77 24 37 41 33 39 35 52 77 70 92 62
Working Capital Days 75 -11 25 23 15 28 24 32 48 46 58 42
ROCE % 20% 28% 35% 34% 35% 37% 41% 38% 30% 25% 21% 22%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
47.58 47.58 47.58 47.58 47.58 47.58 47.58 47.58 47.54 47.54 47.54 47.51
24.68 25.96 26.01 26.22 23.97 23.14 21.86 23.31 23.68 25.25 25.09 24.89
10.24 10.31 10.24 10.06 13.01 14.89 16.98 16.72 15.33 14.46 14.89 15.24
0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.00 0.00 0.00
17.08 15.73 15.75 15.71 15.01 13.97 13.15 11.97 13.03 12.75 12.48 12.36

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