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]

See full details
  • Market Cap 20,751 Cr.
  • Current Price 1,304
  • High / Low 1,319 / 533
  • Stock P/E 54.9
  • Book Value 117
  • Dividend Yield 0.77 %
  • ROCE 22.2 %
  • ROE 17.4 %
  • 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 30.46%

Cons

  • Stock is trading at 11.10 times its book value
  • The company has delivered a poor sales growth of 2.87% over past five years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
725 759 815 700 715 741 652 278 713 838 953 562
616 638 692 594 609 630 559 285 569 657 762 481
Operating Profit 109 121 123 106 105 111 93 -8 144 182 191 80
OPM % 15% 16% 15% 15% 15% 15% 14% -3% 20% 22% 20% 14%
Other Income 1 5 5 5 7 5 7 3 5 6 7 6
Interest 5 4 3 5 5 5 5 3 2 3 3 3
Depreciation 23 22 22 26 26 28 28 25 27 28 27 27
Profit before tax 83 100 103 81 81 84 67 -34 119 158 169 57
Tax % 39% 34% 35% 38% -15% 27% 27% 2% 25% 23% 22% 27%
Net Profit 50 66 66 51 93 62 50 -27 89 119 127 43
EPS in Rs 3.16 4.15 4.15 3.21 5.86 3.87 3.12 -1.70 5.61 7.48 7.99 2.71

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
430 953 1,313 1,583 1,836 2,187 2,413 2,550 2,711 2,956 2,808 2,781 3,065
371 803 1,105 1,336 1,550 1,831 1,950 2,049 2,253 2,501 2,391 2,266 2,468
Operating Profit 59 150 208 247 287 355 463 500 457 455 417 515 597
OPM % 14% 16% 16% 16% 16% 16% 19% 20% 17% 15% 15% 19% 19%
Other Income 1 -1 -0 1 1 0 5 11 11 8 23 15 25
Interest 26 30 49 46 41 29 34 34 24 16 20 11 10
Depreciation 22 30 39 45 47 56 73 81 89 89 108 107 108
Profit before tax 11 89 120 158 199 270 361 396 355 358 312 413 503
Tax % 29% 32% 32% 32% 34% 32% 35% 36% 36% 36% 19% 25%
Net Profit 8 61 81 105 124 176 231 253 235 227 255 308 378
EPS in Rs 0.55 4.12 5.50 7.11 8.22 11.05 14.56 15.91 14.78 14.25 16.06 19.36 23.79
Dividend Payout % 18% 24% 23% 21% 21% 18% 17% 19% 20% 21% 19% 52%
Compounded Sales Growth
10 Years:11%
5 Years:3%
3 Years:1%
TTM:28%
Compounded Profit Growth
10 Years:18%
5 Years:6%
3 Years:10%
TTM:113%
Stock Price CAGR
10 Years:36%
5 Years:12%
3 Years:55%
1 Year:145%
Return on Equity
10 Years:21%
5 Years:18%
3 Years:16%
Last Year:17%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
15 15 15 15 15 16 16 16 16 16 16 16
Reserves 128 208 267 346 489 725 956 1,159 1,334 1,559 1,698 1,853
Borrowings 345 288 278 320 236 243 294 213 170 120 166 126
120 300 331 367 435 575 653 652 620 677 557 530
Total Liabilities 608 810 891 1,048 1,176 1,559 1,918 2,040 2,140 2,372 2,437 2,525
368 491 521 620 692 860 1,121 1,177 1,145 1,078 1,195 1,192
CWIP 3 0 2 8 41 78 8 8 18 93 27 15
Investments 1 3 0 0 0 0 0 0 0 0 10 5
236 315 368 420 443 621 790 854 977 1,200 1,206 1,313
Total Assets 608 810 891 1,048 1,176 1,559 1,918 2,040 2,140 2,372 2,437 2,525

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
-29 159 91 98 166 180 316 338 238 317 224 509
-103 -167 -69 -150 -151 -263 -267 -140 -136 -261 -90 -296
131 5 -19 53 -13 87 -39 -168 -72 -114 -140 -205
Net Cash Flow -1 -2 3 0 2 5 10 30 30 -58 -6 9

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2007 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 53 36 33 33 33 35 41 49 61 59 52 57
Inventory Days 241 105 114 121 90 151 166 148 150 147 189 119
Days Payable 75 116 108 91 71 120 126 106 102 112 88 66
Cash Conversion Cycle 218 25 38 63 52 65 81 90 108 94 152 110
Working Capital Days 137 19 26 30 24 24 40 45 58 52 72 61
ROCE % 9% 32% 33% 34% 36% 36% 33% 26% 24% 19% 22%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
47.58 47.58 47.58 47.58 47.58 47.58 47.58 47.58 47.58 47.54 47.54 47.54
24.29 24.68 25.96 26.01 26.22 23.97 23.14 21.86 23.31 23.68 25.25 25.09
9.73 10.24 10.31 10.24 10.06 13.01 14.89 16.98 16.72 15.33 14.46 14.89
0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.00 0.00
17.98 17.08 15.73 15.75 15.71 15.01 13.97 13.15 11.97 13.03 12.75 12.48

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