KJC shares closed on BSE down by 1,179.05 each 13.85 or 1.16% on Tuesday. Shares touch intraday highs 1,192.80 each before correcting amid a broader bearish market tone.
mid cap company Market evaluation is around 18,774.31 crores at present.
Shares of KJC on D-Street have jumped over 22 per cent in the past three months. However, the stock’s annual performance has been volatile. But, the shares have gained about 127% in two years. shares were close 520 per share level as on September 14, 2020.
Kajaria Ceramics Dividend
Company announces final Dividend of 3 (300%) per equity share whose face value is Re 1 each for the financial year ended March 31, 2022.
On August 31, in its regulatory filing, KJC said, “Final dividend on equity shares @ Rs.3 per equity share of Rs.1 each, as recommended by the Board of Directors, if declared at the AGM, shall be paid or Before that Saturday, October 22, 2022.”
The shareholders eligible for dividend benefit shall be those whose names appear in the register at the end of business hours on Friday, 16th September, 2022, to be submitted by NSDL and CDSL.
Due to which the shares will become ex-dividend on September 15.
In the financial year 2012, the company also paid interim dividend of 8 per share (800%) overall 127.34 crores.
including the final dividend of 3 per share, KJC will pay the total 11 dividends for the financial year totaling 175.09 crores.
Should you invest in Kajaria Ceramics shares?
Jefferies said in its August 31 note, “We see KJC as a strong play on housing revival/home furnishing. Write by Retain with Revised PT. 1,400 post-roll-over. Maintain target PE at ~35x. KJC is one of our top SMID picks.”
In the original case, Jefferies specified a target value of 1,400 to the company. In this scenario the brokerage report said, “We are bullish on potential housing revival in India, KJC (now 60% of value added sales), traction in new margin-exciting products and upward margin trajectory – 20%+ EPS growth over FY22-25E. Also, exports by Morbi players may sustain pricing stability in the domestic market.”
Meanwhile, in an upside-down scenario where Jefferies used . target price of 2,000 on KJC, the report said, “The tiles industry is considered to be one of the major beneficiaries of GST and e-way bill, with the unorganized segment accounting for ~60-65% of the total volume. KJC is the market leader in organized tiles; Can help it gain traction ahead of peers. The pan-India footprint acts as a strong moat.”
Also, in the negative scenario where the target price is 800 is set, the Jefferies report said, “increasing competition, especially from unorganized tile players in Morbi, Gujarat, India, volume and pricing pressure on organized players, posing risks to KJC’s market share.” In addition, higher-than-expected input cost headwinds (a sharp rise in gas prices), could impact gross margins. Additionally, slowdown in economic growth and spending, and slow pace of value-added new product launches are some of the major risks.
As Jefferies reports, Morbi players are unlikely to divert large-scale production volumes toward the domestic market — this bodes well for domestic pricing and profitability — with KJC leading the market. Moreover, the price hike by Morbi will add to the difference in their pricing with that of organized players. Over FY22/25e, the brokerage expects KJC to deliver 17%/22% SELL/PAT CAGR, 13% volume CAGR.
The company produces a variety of tiles, including kitchen tiles, bathroom tiles, wall tiles, floor tiles and exterior wall tiles.
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