Wednesday, September 30, 2020

Kajaria Ceramics Ltd – Doubling operating cash flows

Kajaria Ceramics Ltd  closes   at 548.45 with  a  Gain   of  +5.40 %   on    29-Sep-2020   with formation of  a  Green Candle    on Daily  Price Chart.
About the Company : Kajaria Ceramics is engaged in a manufacturer of ceramic and vitrified wall and floor tiles
Kajaria Ceramics Ltd  has posted Net Sales / Revenue   of 2808.00 Cr & Net Profit of 231.20 Cr in FY2020 and expected to post Net Sales / Revenue   of 2197.10 Cr & Net Profit  of 141.70 Cr in FY2021 and Net Sales / Revenue   of 2607.3 Cr & Net Profit of 226.80 Cr in FY2022  and Net Sales / Revenue   of 3111.70 Cr & Net Profit of 304.20 Cr in FY2023.

Sector Update : The tiles sector will see momentum in the near term with metros and tier-1 cities set to further open up after the September quarter 2020.

Strength : Gradual recovery in demand from the domestic market, as well as robust growth in export orders. The falling cost amid improving volumes are also expected to aid the operating profit margin( Reduction in Gas Prices in Gujarat by 15%). Operating profit margin to improve from 13.8 per cent in FY21 to 16.5 per cent in FY22.

Valuations  : Valuations  :  The Company is now Trading at X 2..60  of its  valuations ( last 4Quaters earnings considered here)at ~160% premium  and at X3.71 of its FY 2021, which is now almost  ~2.71%  Premium to its value and  X 2.32  of its FY 2022 earning with a premium of ~132% and X1.73 of its FY2023 earning with ~73% premium to its valuations.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.6; any downslide makes it attractive. The Best Price at X1 EPV to Past Reference(5Yrs) is Rs. 445.

Return on Equity (ROE) which is now 14.90 for FY2020 will be 7.8% in FY2021 and will improve to +13.90 % by the FY2023.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

 


No comments:

Post a Comment

Thanks for Your Valuable comments. It will make Us to Serve You in Better Way. For Any STOCKS Query ,Please Call NiftyNext +91 880 2230 836.

Disclaimer

The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip. www.niftynext..com does 't take any Responsibility for any losses arising from using the Stocks Recommendations.
We( WWW.NIFTYNEXT.COM) are not Registered with Any Regulatory Body in India ie SEBI,NSE,BSE,AMFI or Any Otheres.


Blog Archive