Kajaria Ceramics Q4 Results: IDBI Capital Downgrades Rating To 'Hold', Cuts Target Price Post Subdued Earnings

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IDBI Capital Report

Kajaria Ceramic Ltd.’s Q4 FY25 result was below our forecasts, particularly on margins front. Contrary to the expectations of the management, the industry was impacted by sluggish demand and weakness in domestic markets as well as export markets. Given uncertainty in the domestic market, the company refrained from giving sales volume guidance for FY26.

Net sales was down by 1.5% YoY to Rs12.2bn, while Ebitda came in at Rs 1.3 billion, declined by 19.5% YoY. The company reported net profit of Rs 0.7 billion, lower by 29% over Q4 FY24. We anticipate challenging business environment to persist in near term.

Consequently, we have cut our earnings estimates for FY26E/FY27E. We downgrade the stock to Hold with a revised target price of Rs 914 (earlier Rs 1,230), assigning 30x PER on FY27E (from 35x PER on FY27E).

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