Kajaria Ceramics Limited (KAJARIACER) AI Stock Analysis

• Market Cap: ₹151.68B
• Dividend Yield: 1.15%
• Average Volume (3M): 9.45K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.80
• Revenue Growth: -0.24%
• EPS Growth: -4.87%
• Country: IN
• Employees: 4,484
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 8.00
• 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: ₹1,090.75
• Price Target Upside: 11.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 31.61
• Revenue Forecast (FY): ₹47.68B

• Rating: 69 Neutral
• Price Target: ₹1,042.00 ▲(6.06% Upside)
• Action: N/A Date: 07/08/25
• Date: Action: N/A 07/08/25

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

Profitability margins

Sustained gross margins above 37% and a healthy EBIT margin (~10%) signal durable pricing power and efficient manufacturing. These margins support reinvestment and buffer against input-cost swings, enabling consistent profitability even if volumes fluctuate.

Strong balance sheet / low leverage

An equity ratio north of 70% and minimal debt reduce financial risk and interest burden, preserving strategic optionality for capex or acquisitions. This conservatism enhances resilience across construction cycles and protects cash flow from leverage shocks.

Cash generation capability

Growing free cash flow and a robust operating cash flow to net income ratio indicate effective cash conversion. Reliable cash generation supports working-capital needs, funds maintenance and growth capex, and underpins shareholder returns without leaning on external financing.

Negative Factors

Revenue decline

A near 40% year-over-year revenue decline is a significant structural risk: it can reflect lost volumes, pricing pressure, or market share erosion. Persistent revenue weakness will strain fixed-cost absorption, compress margins, and limit ability to sustainably invest or return cash to shareholders.

Volatile free cash flow growth

Although FCF improved year-over-year, variability in free cash flow growth creates forecasting uncertainty. Such volatility complicates capex scheduling and dividend planning, and raises the risk of liquidity pressure if downturns coincide with higher working-capital needs.

Cyclical demand exposure

Heavy reliance on construction and real-estate activity makes company revenues cyclical and sensitive to macro and project timing. Prolonged weakness in housing or infrastructure investment can depress volumes and realizations for multiple quarters, limiting durable top-line growth.

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 makes money mainly by selling tiles (ceramic and vitrified) to customers in the building and home-improvement value chain. Its core revenue stream is product sales of floor and wall tiles, which are sold through a broad distribution network that typically includes dealers, sub-dealers, retailers, and company showrooms/display outlets, as well as sales to institutional/real-estate and project customers for large-volume requirements. Revenue is generated on a per-unit (e.g., square meter/square foot) basis, with realizations influenced by product mix (premium vs. mass-market lines, vitrified vs. ceramic), design/finish differentiation, brand strength, and channel/customer segment. The company’s earnings are supported by manufacturing operations (capturing manufacturing margin on in-house production) and by sourcing/outsourcing arrangements for certain products where it sells under its brand via the same distribution channels, capturing trading/brand distribution margins. Key factors that typically drive its revenue and profitability include demand conditions in construction and real estate, replacement/renovation cycles, capacity utilization, pricing power, competitive intensity in tiles, and input/energy costs (which affect gross margins). Specific details on named partnerships, customer concentration, or segment-wise revenue breakdown beyond tiles are not available in the provided context; therefore those details are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.74B	46.35B	44.74B	43.82B	37.05B	27.81B
Gross Profit	16.16B	26.23B	25.37B	25.39B	21.22B	15.10B
EBITDA	6.67B	6.02B	6.90B	5.78B	5.98B	5.02B
Net Income	3.62B	2.94B	4.22B	3.44B	3.77B	3.08B
Balance Sheet
Total Assets	39.69B	37.56B	35.43B	33.31B	29.87B	25.27B
Cash, Cash Equivalents and Short-Term Investments	5.47B	4.41B	3.09B	1.64B	2.30B	3.92B
Total Debt	2.90B	2.74B	2.39B	2.50B	1.65B	1.26B
Total Liabilities	9.71B	9.46B	8.67B	9.26B	7.99B	5.93B
Stockholders Equity	29.30B	27.44B	26.17B	23.27B	21.22B	18.69B
Cash Flow
Free Cash Flow	1.59B	3.25B	3.01B	638.50M	1.57B	3.96B
Operating Cash Flow	2.21B	4.55B	5.97B	2.96B	4.26B	5.09B
Investing Cash Flow	-2.25B	-3.72B	-3.28B	-1.84B	-2.98B	-2.96B
Financing Cash Flow	-56.20M	-2.09B	-2.00B	-1.35B	-1.20B	-2.05B

Kajaria Ceramics Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 982.50
• 50DMA: Positive
• 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 Positive. The current price of 982.5 is above the 20-day moving average (MA) of 944.52, above the 50-day MA of 950.99, and below the 200-day MA of 1093.27, indicating a neutral trend. The MACD of -7.22 indicates Negative momentum. The RSI at 51.77 is Neutral, neither overbought nor oversold. The STOCH value of 67.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹151.68B	43.96	―	1.15%	-0.24%	-4.87%
INDIAGLYCO	65 Neutral	₹58.68B	23.54	―	0.47%	5.61%	33.63%
RAMCOCEM	62 Neutral	₹218.44B	16.20	―	0.19%	-2.61%	34.66%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JKLAKSHMI	61 Neutral	₹73.54B	42.43	―	0.82%	6.13%	31.60%
JAIBALAJI	53 Neutral	₹59.10B	139.02	―	―	-13.11%	-69.18%
SAGCEM	48 Neutral	₹21.82B	-12.17	―	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.