Sushil Finance has recommended hold rating on Kajaria Ceramics (KCL) with a target of Rs 191, in its July 19, 2012 research report.
‚??Kajaria Ceramics Limited (KCL) has reported good set of numbers which were in lines with our expectations. For the quarter ended 30th June, 2012 (Q1FY13). It has posted total sales on standalone basis of Rs.3532 mn, registering a growth of 31% YoY (driven by product mix & increased domestic demand). The EBITDA grew by 28% YoY to Rs. 537 mn while the EBITDA margins decreased by 33 bps to 15.2%. Its PBT (including other income) increased by 32% YoY and APAT stood at Rs. 222 mn registering a growth of 32% YoY. Its AEPS for the quarter stood at Rs. 3.02.‚??
‚??KCL has performed exceedingly well in the past few years on the back of rising tiles demand, leveraging its strong brand & distribution network, focus on value added products & consistent expansion in its capacities. Given its strong market positioning, increased capacities of its vitrified tiles, foray into new product lines of high end sanitaryware & wooden flooring segments, we expect KCL to deliver strong growth over the coming years.† After incorporating its Q1FY13 numbers which were in lines with our expectation, we have retained our old numbers; we expect its Revenues and APAT to grow strongly by 25.2% & 35.3% in FY13 and 19.8% & 29.1% in FY14 respectively. We retain our ‚??HOLD‚?? rating on the stock with the maintained price target of Rs.191 (10x FY14E EPS of Rs.19.1),‚?? says Sushil Finance research report.
Bodies Corporate holding more than 50% in Indian cos
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