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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Kajaria Ceramics Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:56 pm

Market Cap 18,164 Cr.
Current Price 1,141
High / Low1,579/1,110
Stock P/E47.7
Book Value 169
Dividend Yield1.05 %
ROCE21.2 %
ROE16.8 %
Face Value 1.00
PEG Ratio5.16

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Kajaria Ceramics Ltd

Competitors of Kajaria Ceramics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Exxaro Tiles Ltd 408 Cr. 91.2126/76.0 60.90.00 %4.54 %0.72 % 10.0
Carysil Ltd 2,116 Cr. 7441,151/72133.3 1740.27 %17.1 %17.6 % 2.00
Somany Ceramics Ltd 2,563 Cr. 624873/56132.2 1800.48 %14.4 %12.9 % 2.00
Orient Bell Ltd 480 Cr. 326447/300716 2140.15 %0.97 %0.34 % 10.0
Nitco Ltd 837 Cr. 116127/26.8 82.20.00 %14.0 %% 10.0
Industry Average3,870.78 Cr1,015.11150.85198.150.39%11.55%19.42%7.00

All Competitor Stocks of Kajaria Ceramics Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8389535629741,0681,1021,0081,0781,0911,2051,0641,1221,152
Expenses6577624817938849368559489581,029895942973
Operating Profit18219180180184166154129133176169179178
OPM %22%20%14%19%17%15%15%12%12%15%16%16%16%
Other Income67677784769811
Interest3333344387545
Depreciation28272728283332343334313639
Profit before tax1581695715716013612697100140143147146
Tax %23%22%27%24%22%29%26%29%26%21%24%25%26%
Net Profit1211314111912597936974111109111108
EPS in Rs7.487.992.717.307.676.015.804.394.676.786.756.786.54

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,3131,5831,8362,1872,4132,5502,7112,9562,8082,7813,7054,3824,482
Expenses1,1051,3361,5501,8311,9502,0492,2532,5012,3912,2663,0933,7893,824
Operating Profit208247287355463500457455417515612593658
OPM %16%16%16%16%19%20%17%15%15%19%17%14%15%
Other Income-01105111182315262531
Interest49464129343424162011132225
Depreciation3945475673818989108107115133133
Profit before tax120158199270361396355358312413510462530
Tax %32%32%34%32%35%36%36%36%19%25%25%25%
Net Profit82108131185236254229229254309383346404
EPS in Rs5.507.118.2211.0514.5615.9114.7814.2516.0619.3623.6821.6424.98
Dividend Payout %23%21%21%18%17%19%20%21%19%52%46%42%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)31.71%21.30%41.22%27.57%7.63%-9.84%0.00%10.92%21.65%23.95%-9.66%
Change in YoY Net Profit Growth (%)0.00%-10.41%19.93%-13.65%-19.94%-17.47%9.84%10.92%10.74%2.29%-33.61%

Kajaria Ceramics Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:9%
3 Years:18%
TTM:5%
Compounded Profit Growth
10 Years:13%
5 Years:12%
3 Years:10%
TTM:-5%
Stock Price CAGR
10 Years:14%
5 Years:17%
3 Years:1%
1 Year:-10%
Return on Equity
10 Years:18%
5 Years:17%
3 Years:17%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 9:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital15151616161616161616161616
Reserves3464897259561,1591,3351,5591,6981,8532,1062,3112,6012,682
Borrowings320236243294213170120166126165250239261
Other Liabilities367435575653652619677557530699751684752
Total Liabilities1,0481,1761,5591,9182,0402,1402,3722,4372,5252,9863,3283,5393,711
Fixed Assets6206928601,1211,1771,1451,0781,1951,1921,1501,4471,6381,704
CWIP841788818932715263826895
Investments0000000105021820
Other Assets4204436217908549771,2001,2061,3131,5731,7981,8151,891
Total Assets1,0481,1761,5591,9182,0402,1402,3722,4372,5252,9863,3283,5393,711

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +98166180316338238317224509426296602
Cash from Investing Activity +-150-151-263-267-140-136-261-90-296-298-182-298
Cash from Financing Activity +53-1387-39-168-72-114-140-205-120-135-216
Net Cash Flow025103030-58-697-2288

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow208.00-73.0051.00112.00169.00287.00287.00335.00251.00389.00447.00343.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days333335414961595257515049
Inventory Days1219815118916815014718911912212798
Days Payable91781201441211021128866787054
Cash Conversion Cycle6354658796108941521109410793
Working Capital Days171621343954497161486056
ROCE %32%32%34%34%31%25%23%18%21%24%20%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters47.51%47.50%47.50%47.49%47.49%47.49%47.49%47.49%47.49%47.49%47.49%47.49%
FIIs22.45%21.27%19.58%19.44%18.57%16.89%17.95%18.48%18.33%19.18%16.21%16.07%
DIIs17.26%20.32%22.40%22.82%24.49%26.23%25.22%25.43%25.53%24.91%27.83%28.39%
Public12.77%10.91%10.52%10.25%9.44%9.36%9.33%8.59%8.66%8.43%8.46%8.05%
No. of Shareholders78,90783,43576,33077,02670,10468,22567,85471,39674,77780,08183,28077,587

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan5,753,1552.15725.671,231,6572024-11-20367.11%
Mirae Asset Large Cap Fund2,644,1440.97333.521,231,6572024-11-20114.68%
SBI Large & Midcap Fund2,594,8262.09327.31,231,6572024-11-20110.68%
DSP Mid Cap Fund2,039,6661.78257.271,231,6572024-11-2065.6%
Mirae Asset Midcap Fund1,451,3461.55183.071,231,6572024-11-2017.84%
DSP Small Cap Fund1,339,0131.43168.91,231,6572024-11-208.72%
Invesco India Contra Fund1,292,0751.47162.981,231,6572024-11-204.91%
Mirae Asset Emerging Bluechip Fund1,231,6570.55155.361,231,6572024-11-200%
UTI Mid Cap Fund912,3211.32115.081,231,6572024-11-20-25.93%
HSBC Small Cap Fund - Regular Plan841,2000.92106.11,231,6572024-11-20-31.7%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)26.5121.6423.6919.3716.06
Diluted EPS (Rs.)26.4821.6223.6819.3716.06
Cash EPS (Rs.)36.4930.1031.2926.1222.74
Book Value[Excl.RevalReserv]/Share (Rs.)167.96151.03137.38121.52111.82
Book Value[Incl.RevalReserv]/Share (Rs.)167.96151.03137.38121.52111.82
Revenue From Operations / Share (Rs.)287.41275.25232.74174.79176.60
PBDIT / Share (Rs.)46.8339.3040.0933.3227.68
PBIT / Share (Rs.)37.5430.9532.8526.6220.88
PBT / Share (Rs.)36.2129.0532.0525.9419.65
Net Profit / Share (Rs.)27.2021.7524.0419.4215.95
NP After MI And SOA / Share (Rs.)26.5021.6423.6819.3616.06
PBDIT Margin (%)16.2914.2717.2219.0615.67
PBIT Margin (%)13.0511.2414.1115.2211.82
PBT Margin (%)12.5910.5513.7614.8411.12
Net Profit Margin (%)9.467.9010.3211.109.02
NP After MI And SOA Margin (%)9.217.8610.1711.079.09
Return on Networth / Equity (%)16.1314.8017.7616.4814.89
Return on Capital Employeed (%)20.7819.0822.4620.4817.27
Return On Assets (%)11.9110.3412.6212.1910.47
Long Term Debt / Equity (X)0.020.020.010.010.01
Total Debt / Equity (X)0.060.080.060.050.06
Asset Turnover Ratio (%)1.331.341.261.071.13
Current Ratio (X)2.642.252.202.812.30
Quick Ratio (X)1.851.501.502.001.31
Inventory Turnover Ratio (X)1.781.621.781.151.30
Dividend Payout Ratio (NP) (%)33.9541.5933.7751.6437.35
Dividend Payout Ratio (CP) (%)25.1430.0225.8638.3526.24
Earning Retention Ratio (%)66.0558.4166.2348.3662.65
Cash Earning Retention Ratio (%)74.8669.9874.1461.6573.76
Interest Coverage Ratio (X)35.3228.0350.1449.5022.56
Interest Coverage Ratio (Post Tax) (X)21.5216.8731.0729.8413.99
Enterprise Value (Cr.)18137.8116673.6115973.2914421.345942.86
EV / Net Operating Revenue (X)3.963.814.315.192.12
EV / EBITDA (X)24.3226.6525.0327.2013.50
MarketCap / Net Operating Revenue (X)4.023.834.375.292.13
Retention Ratios (%)66.0458.4066.2248.3562.64
Price / BV (X)7.047.217.647.873.49
Price / Net Operating Revenue (X)4.023.834.375.292.13
EarningsYield0.020.020.020.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kajaria Ceramics Ltd as of November 21, 2024 is: 1,368.52

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Kajaria Ceramics Ltd is Undervalued by 19.94% compared to the current share price 1,141.00

Intrinsic Value of Kajaria Ceramics Ltd as of November 21, 2024 is: 1,494.93

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Kajaria Ceramics Ltd is Undervalued by 31.02% compared to the current share price 1,141.00

Last 5 Year EPS CAGR: 9.24%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 26.25%, which is a positive sign.
  2. The company has higher reserves (1,524.62 cr) compared to borrowings (215.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.15 cr) and profit (341.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 43.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 93.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Kajaria Ceramics Ltd:
    1. Net Profit Margin: 9.46%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.78% (Industry Average ROCE: 11.55%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16.13% (Industry Average ROE: 17.47%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 21.52
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.85
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 47.7 (Industry average Stock P/E: 90.51)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Kajaria Ceramics Ltd. is a Public Limited Listed company incorporated on 20/12/1985 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L26924HR1985PLC056150 and registration number is 056150. Currently Company is involved in the business activities of Manufacture of other clay building materials. Company’s Total Operating Revenue is Rs. 3299.38 Cr. and Equity Capital is Rs. 15.92 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Ceramics/Tiles/SanitarywareSF-11, Second Floor, JMD Regent Plaza, Gurgaon Haryana 122001investors@kajariaceramics.com
http://www.kajariaceramics.com
Management
NamePosition Held
Mr. Ashok KajariaChairman & Managing Director
Mr. Chetan KajariaJoint Managing Director
Mr. Rishi KajariaJoint Managing Director
Mr. Dev Datt RishiNon Executive Director
Mr. Rajender Mohan MallaIndependent Director
Mrs. Sushmita ShekharIndependent Director
Dr. Lalit Kumar PanwarIndependent Director
Mr. Sudhir BhargavaIndependent Director

FAQ

What is the latest intrinsic value of Kajaria Ceramics Ltd?

The latest intrinsic value of Kajaria Ceramics Ltd as on 21 November 2024 is ₹1368.52, which is 19.94% higher than the current market price of ₹1,141.00.

What is the Market Cap of Kajaria Ceramics Ltd?

The Market Cap of Kajaria Ceramics Ltd is 18,164 Cr..

What is the current Stock Price of Kajaria Ceramics Ltd as on 21 November 2024?

The current stock price of Kajaria Ceramics Ltd as on 21 November 2024 is ₹1,141.

What is the High / Low of Kajaria Ceramics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Kajaria Ceramics Ltd stocks is 1,579/1,110.

What is the Stock P/E of Kajaria Ceramics Ltd?

The Stock P/E of Kajaria Ceramics Ltd is 47.7.

What is the Book Value of Kajaria Ceramics Ltd?

The Book Value of Kajaria Ceramics Ltd is 169.

What is the Dividend Yield of Kajaria Ceramics Ltd?

The Dividend Yield of Kajaria Ceramics Ltd is 1.05 %.

What is the ROCE of Kajaria Ceramics Ltd?

The ROCE of Kajaria Ceramics Ltd is 21.2 %.

What is the ROE of Kajaria Ceramics Ltd?

The ROE of Kajaria Ceramics Ltd is 16.8 %.

What is the Face Value of Kajaria Ceramics Ltd?

The Face Value of Kajaria Ceramics Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Kajaria Ceramics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE