Kajaria Ceramics - Industry Tailwinds, Gas Price Reduction To Benefit: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We estimate Kajaria Ceramics Ltd. revenue/Ebitda/profit after tax compound annual growth rate of 11%/17%/20% over FY24-26. We estimate its return on equity/return on capital employed to improve to 22%/26% by FY26 versus 18%/21% in FY24. Kajaria Ceramics has been generating free cash flow since FY16, which is likely to continue going forward as well. The company turned net cash in FY19 and we expect it to remain so going ahead as well (net cash is estimated at Rs 3.8 billion in FY26 versus Rs 1.8 billion in FY23) despite higher capex (Rs 10.2 billion over FY24-26). The stock is currently trading at an attractive valuation of 29 times FY26E earnings per share (versus 37 times last five-year average one-year forward price/earning). We reiterate our Buy rating on Kajaria Ceramics with a target price of Rs 1,600 based on 40 times FY26E EPS..Click on the attachment to read the full report:.AU Small Finance Bank - Laying Strong Foundation Of A Forever Bank: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Kajaria Ceramics - Industry Tailwinds, Gas Price Reduction To Benefit: Motilal Oswal

Average energy price down ~7% as compared to Q3 FY24 average

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