📢 5 STEPS TOWARDS WEALTH 🚀 The Indian Stock Market Way

📍 Delhi | 22nd March 2025 | Saturday / 🕕 5:59 PM - 9:01 PM (Entry from 5:30 PM onwards)

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Kajaria Cera: 1174: Long term sales: 12 CYear Sales: 79 Q1 Result Update on 29th July-2

Lesson 145/223 | Study Time: 5 Min

Course: Top Quality Companies

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India and the 8 th* largest in the world. It has present annual capacity of 82.80 mn. sq. meters presently, distributed across eight plants - one at Sikandrabad in Uttar Pradesh, one at Gailpur, one at Malootana in Rajasthan, three at Morbi in Gujarat, one at Vijayawada andone atSrikalahasti inAndhra Pradesh.

The Company is very good growing, is almost debt free, with consistent profitability, Better Profit margins then peer and with a very high return on equity. Able to grow with 16% CAGR sales and profits for the past 20 years. Hence, investment is already 600X during past 20 yeas along with consistent dividends which are equal to 2X of original investment received every year. Yes, the wealth creator.

Q1 result: Even during current Geo_political crisis where commodity prices are at sky, we saw good result form Kajaria. Sales grew by 79% shows strong demand. This is now the seventh straight
quarter delivering double digit revenue growth. 60% of the cost comes from Power & Fuel along with the material cost. Here we saw material cost was not inflated but power & fuel cost grew by 100%. Company was able to sustain their margin even during this inflatory time is high positive. Hence their Profits grew by 121% maintaining their profit margins at 9% which are actually better then last year. The industry's demand scenario continues to be healthy given traction in the real estate sector despite high input costs and increasing interest rates. At present we are witnessing a greater momentum in the tier II and below markets vs the metros. Also, the recent correction in commodity prices and the forecast of a good monsoon are encouraging. We may see this year the growth of 50% in sales and around 45% in Profits this year.

Happy to see many of you are holding this wealth creator since more then decade around the price of 35-50 and since then we saw price rallied by 30X. Yet many of you have taken the opportunity to buy during each fall. Those just bought during past fall near 400 should not be in hurry towards booking profit but should have the target of 2200 in the next 4 years as per 200% pot sheet. New buying again can be done during any fall near 864. Overall can expect multiyear rally here with consistent profits.

India is on the move from 35% to 50% urbanization till 2030 & hence around 2.5 Cr New homes expected. Growth should be seen in the coming years. Buying or SIP can be done. Yes long term - Wealth Creator. MutualFund along with Insurance hold around 17% & FPI holds this wealth 23%, retail participation only 10%. Norges bank just bought in last June around 1.4 Lakh shares which is 0.08% stake near the price of 1000. Now they have total 5.01% stake in Kajaria.

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Piyush Patel

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