Monday, 27 November 2017

Wealth Creation Idea : Kajaria Ceramics

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has 8 Plants- in Uttar Pradesh, Rajasthan, Gujarat and Andhra Pradesh. It offers more than 2,600 options in ceramic wall & floor tiles, vitrified tiles, designer tiles. Kajaria Ceramics exports to more than 30 countries round the Globe.

Financial Performance :
  • M-cap:  INR 11633 cr
  • CMP:  732 INR (27th Nov 2017)
  • EPS: 15.13 INR
  • PE: 48.3
  • Debt equity ratio :0.17
  • Book Value: 82 INR
  • Promoter Share holding is 47.39 %.
  • DII/FII/FPI Share  holding 29.14%

Why Kajaria Ceramics?
  • Company has consistent profit growth of 27.25% over 5 years.
  • Distribution Network of strong and loyal 1200 dealers all over the country.
  • Company is going to Expand the ‘Prima Plus’ channel network from the current 41 showrooms to 100 showrooms by March 2019.
  • Good return on equity track record: 3 Years ROE 27.33%.
  • According to CLSA, India expects to build 60 million new homes to be built between 2018 and 2024.
  • Smart Cities Mission, Swachh Bharat Abhiyaan (Sanitation for All by 2019), Atal Mission for Rejuvenation, Urban Transformation (AMRUT) and Housing for all by 2022 is expected to provide significant impetus to the demand for tiles.
  •  Biggest organized player in Ceramics business in India.
  • 29 Year of Business Experience. 
  • Due to GST implementation, Organize player like Kajaria get preference in consumers as Price difference between organize and unorganized player decrease.
For long term investment this stock best suited. Next 5-7 year Kajaria ceramics can deliver 3x-5x returns.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.