Kajaria Ceramics Limited (KAJARIACER) AI Stock Analysis

• Market Cap: ₹158.29B
• Dividend Yield: 1.15%
• Average Volume (3M): 9.45K
• Price to Earnings (P/E): 43.7
• Beta (1Y): 0.84
• Revenue Growth: -0.24%
• EPS Growth: -4.87%
• Country: IN
• Employees: 4,484
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 8.39
• Shares Outstanding: 159,272,300
• 10 Day Avg. Volume: 18,999
• 30 Day Avg. Volume: 9,445
• PEG Ratio: -2.19
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 41.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,450.00
• Price Target Upside: 47.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹1,088.00 ▲(10.74% Upside)

Kajaria Ceramics Limited's strong financial performance with robust profitability margins and solid cash management are the primary strengths. However, technical indicators suggest caution due to overbought conditions, and valuation points to potential overvaluation with a high P/E ratio. The overall score reflects these mixed factors, emphasizing financial health while noting technical and valuation risks.

Positive Factors

Brand strength, product breadth and distribution

Kajaria's established brand, broad product range (wall, floor tiles, sanitary ware) and extensive dealer/retailer network provide durable commercial advantages. These structural strengths support premium pricing, steady channel reach and resilience across residential and commercial construction cycles over multiple quarters.

High and stable profitability margins

Sustained gross margins above 37% and mid-single-digit to high-single-digit net margins reflect enduring manufacturing scale, product mix and pricing power. Margin stability underpins cash generation and reinvestment capacity, helping the company absorb cyclical demand shifts and fund long-term growth initiatives.

Low leverage and strong equity funding

A consistently high equity ratio and minimal debt provide durable financial flexibility: lower interest burden, capacity for capex or acquisitions, and greater resilience to demand shocks. Strong capitalization supports strategic investments and preserves cash flow for operations across the medium term.

Negative Factors

Shrinking revenue trend

A roughly 24% reported revenue contraction signals structural weakness in top-line momentum. Persistent revenue decline can erode operating leverage, limit pricing power and strain long-term growth prospects unless market share or new channels are regained over the next several quarters.

Negative EPS growth

Reported negative EPS growth suggests profitability pressure beyond margin stability, potentially from lower volumes or one-off impacts. Continued EPS contraction can constrain capital allocation choices, investor confidence and the ability to fund sustained organic expansion over the medium term.

Volatility in free cash flow

While overall cash generation has been solid, noted swings in free cash flow growth create uncertainty in funding cycles and discretionary investments. Persistent FCF volatility can hamper predictable capex, dividend policies and limit ability to pursue strategic opportunities over a 2-6 month horizon.

Kajaria Ceramics Limited Business Overview & Revenue Model

Company Description

Kajaria Ceramics Limited manufactures and sells ceramic and vitrified tiles under the Kajaria, Kerovit, and Eternity brands in India. The company's products include ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitary ware and faucets, and plywood and laminates, as well as tile adhesives, epoxy and unsanded grout, and tiles cleaner. It also exports its products to approximately 35 countries. The company was incorporated in 1985 and is headquartered in New Delhi, India.

How the Company Makes Money

Kajaria Ceramics generates revenue primarily through the sale of its ceramic and vitrified tiles, which are distributed through a wide network of dealers and retailers across India and international markets. The company's revenue model is driven by several key streams, including direct sales from manufacturing plants, exports, and strategic partnerships with distributors. Additionally, Kajaria capitalizes on its reputation for quality and design to command premium pricing on certain product lines. The company also invests in marketing and promotional activities to enhance brand visibility, which contributes to increased sales. Key factors contributing to its earnings include a growing demand for premium tiles in the real estate sector, rising urbanization, and the expansion of housing and infrastructure projects in India.

Kajaria Ceramics Limited Financial Statement Overview

Summary

Kajaria Ceramics Limited exhibits strong financial health with robust profitability margins and a solid equity foundation. While revenue growth shows signs of slowing, the company's effective cash flow management and low leverage provide a stable financial outlook, though caution is warranted regarding potential market challenges impacting revenue.

Income Statement

Kajaria Ceramics Limited demonstrated robust profitability with a Gross Profit Margin consistently above 37% over recent years and a respectable Net Profit Margin around 6-9%. The company maintained a healthy EBIT Margin of 10% in the latest year. However, a dip in revenue growth in 2025 compared to 2024 highlights potential market challenges.

Balance Sheet

The company maintains a strong Equity Ratio consistently above 70%, indicating financial stability and low leverage with a Debt-to-Equity Ratio under 0.1. However, the Return on Equity has shown slight fluctuations, reflecting a mixed impact on profitability generation from equity investments.

Cash Flow

Kajaria Ceramics displayed solid Free Cash Flow generation, with a noticeable growth from 2024 to 2025. The Operating Cash Flow to Net Income Ratio has been strong, underscoring effective cash generation. However, fluctuations in Free Cash Flow growth indicate potential volatility in cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.68B	46.35B	44.74B	43.82B	37.05B	27.81B
Gross Profit	17.72B	26.23B	25.37B	25.39B	21.22B	15.10B
EBITDA	5.98B	6.02B	6.90B	5.78B	5.98B	5.02B
Net Income	3.14B	2.94B	4.22B	3.44B	3.77B	3.08B
Balance Sheet
Total Assets	0.00	37.56B	35.43B	33.31B	29.87B	25.27B
Cash, Cash Equivalents and Short-Term Investments	5.83B	4.41B	3.09B	1.64B	2.30B	3.92B
Total Debt	0.00	2.74B	2.39B	2.50B	1.65B	1.26B
Total Liabilities	-28.10B	9.46B	8.67B	9.26B	7.99B	5.93B
Stockholders Equity	28.10B	27.44B	26.17B	23.27B	21.22B	18.69B
Cash Flow
Free Cash Flow	0.00	3.25B	3.01B	638.50M	1.57B	3.96B
Operating Cash Flow	0.00	4.55B	5.97B	2.96B	4.26B	5.09B
Investing Cash Flow	0.00	-3.72B	-3.28B	-1.84B	-2.98B	-2.96B
Financing Cash Flow	0.00	-2.09B	-2.00B	-1.35B	-1.20B	-2.05B

Kajaria Ceramics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 982.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KAJARIACER, the sentiment is Negative. The current price of 982.5 is below the 20-day moving average (MA) of 1002.66, below the 50-day MA of 1054.16, and below the 200-day MA of 1076.49, indicating a bearish trend. The MACD of -19.10 indicates Negative momentum. The RSI at 39.34 is Neutral, neither overbought nor oversold. The STOCH value of 64.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KAJARIACER.

Kajaria Ceramics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAJARIACER	69 Neutral	₹158.29B	43.70	―	1.15%	-0.24%	-4.87%
INDIAGLYCO	65 Neutral	₹64.28B	22.92	―	0.47%	5.61%	33.63%
RAMCOCEM	62 Neutral	₹251.77B	67.65	―	0.19%	-2.61%	34.66%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKLAKSHMI	61 Neutral	₹96.18B	19.41	―	0.82%	6.13%	31.60%
JAIBALAJI	55 Neutral	₹60.23B	20.56	―	―	-13.11%	-69.18%
SAGCEM	48 Neutral	₹26.29B	-15.75	―	0.33%	3.34%	-112.79%

Kajaria Ceramics Limited Corporate Events

Kajaria Ceramics Shares Investor Call Recording on Fraud at Step-Down Subsidiary

Kajaria Ceramics has informed stock exchanges that it has uploaded the audio recording of an investors’ conference call held on December 22, 2025, convened to address a recent fraud incident in its step-down wholly owned subsidiary that was earlier disclosed on December 19, 2025. The move underscores the company’s effort to maintain regulatory compliance under SEBI’s disclosure norms and provide greater transparency to investors and other stakeholders regarding the unexpected event and its implications.

Kajaria Ceramics’ Marketing COO Bhupendra Vyas Retires, Triggers Senior Management Change

Kajaria Ceramics Limited has announced a change in its senior management with the resignation of Bhupendra G. Vyas from the position of Chief Operating Officer (Marketing), effective from the close of business on December 19, 2025, following his decision to retire. The departure of a key marketing executive may prompt adjustments in the company’s marketing leadership and strategy, with implications for how Kajaria Ceramics positions its brand and products in an increasingly competitive building materials and tiles market, though the company has not yet disclosed details of any successor or restructuring plan.

Kajaria Ceramics Adds Two Independent Directors to Strengthen Board Governance

Kajaria Ceramics has strengthened its board by appointing two seasoned professionals, Mr. Hitesh Sohanlal Jain and Mr. Pradeep Udhas, as Additional Non-executive Independent Directors for five-year terms effective from December 19, 2025, subject to shareholder approval. Jain, a senior legal expert and founding partner of Parinam Law Associates, and Udhas, a veteran management and consulting leader associated with KPMG India, bring extensive legal, regulatory, and strategic advisory experience expected to bolster the company’s governance framework and board oversight, reinforcing its compliance posture and potentially enhancing confidence among investors and other stakeholders.

Kajaria Ceramics Bolsters Board with Two New Independent Directors

Kajaria Ceramics has strengthened its board by approving the appointment of two seasoned professionals, Hitesh Sohanlal Jain and Pradeep Udhas, as Additional Non-executive Independent Directors for a five-year term effective from 19 December 2025, subject to shareholder approval. The move, based on the Nomination and Remuneration Committee’s recommendations, is aimed at bolstering corporate governance and strategic oversight, bringing in deep expertise in legal, regulatory and global advisory domains that is expected to support the company’s long-term strategic decisions and enhance confidence among investors and other stakeholders.

Kajaria Ceramics Announces Postal Ballot Results with Transparency

Kajaria Ceramics Limited has submitted copies of advertisements related to the results of its Postal Ballot to the stock exchanges, published in prominent newspapers. This demonstrates the company’s commitment to transparency and regulatory compliance, reinforcing trust with shareholders and stakeholders.

Kajaria Ceramics Opens Special Window for Physical Share Transfers

Kajaria Ceramics Limited has announced the opening of a special window for the re-lodgement of transfer requests for physical shares. This initiative is part of the company’s compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and was communicated through newspaper advertisements in Financial Express and Jansatta on November 22, 2025.

Kajaria Ceramics Completes Dispatch of Postal Ballot Notice

Kajaria Ceramics Limited has announced the completion of the dispatch of the Notice of Postal Ballot dated October 16, 2025. This announcement was made through advertisements published in the Financial Express and Jansatta newspapers. The completion of this process signifies a step forward in the company’s administrative and shareholder communication efforts, potentially impacting its governance and stakeholder engagement strategies.

Kajaria Ceramics Releases Financial Results Conference Call Recording

Kajaria Ceramics Limited has released an audio recording of its conference call discussing the unaudited financial results for the quarter and half-year ending September 30, 2025. This release, in compliance with SEBI regulations, provides stakeholders with insights into the company’s financial performance and strategic direction.