Kajaria Ceramics Limited

Industrials — Building Products & Equipment · NSE

₹1,218.80+₹3.80 (+0.31%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Kajaria Ceramics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kajaria Ceramics Limited manufactures, sells, and distributes ceramic and vitrified wall and floor tiles under the Kajaria, GresBond, and Eternity brands in India and internationally. The company operates through Tiles and Others segments.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees4,356

Annual revenue₹4,825 Cr

How does it make money?

Turns over ₹4,825 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 4,356 employees supports ₹1.11 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.11 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.8% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What is the outlook?

24 analysts covering the stock expect revenue to grow about 8.1% and earnings to grow about 7.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.1%

Est. earnings growth+7.0%

Analysts24

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +10% while net margin moved +28% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+10%

Margin effect+28%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.49 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.5x

3Y Median

55.4x

40 monthly readings · mean 52.5x · range 30.4x–68.5x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 36% below its 3y median of 55.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 60% below the peer median of 88.8x.

vs. its own history

Cheap

55.4x median over 40 months · -36%

vs. sector peers

Cheap

88.8x median of 3 peers · -60%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

21.0x

PEG

2.94

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 14.3% to 19.1% over 3 years.
Cash generation is improving
Free cash flow is up 740% over 3 years.
Return on capital is rising
ROCE has improved from 18.7% to 21.0%.
High return on capital employed
ROCE of 21.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 7.30x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.3% to 19.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 7.30x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 3.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 17%✓ 19.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 3.3% CAGR
Latest reported year was 20.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹536 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 21.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹19,153 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.5x

Fair

Fairly valued against the generic band

P/B Ratio

6.33x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹34.29

Profitable

Profitable on a per-share basis

ROE

15.8%

Strong

Strong capital efficiency

ROCE

21.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.30x

High

High leverage

Revenue Growth (YoY)

20.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

55.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.98%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹536 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

28.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.4%

Good

Healthy core-business profitability

Net Margin

10.8%

Good

Strong bottom-line conversion

Current Ratio

2.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

86%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1213.3 / 1220.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,372 Cr	₹4,464 Cr	₹4,628 Cr	₹4,825 Cr	+3.3%
EBITDA	₹625 Cr	₹742 Cr	₹677 Cr	₹921 Cr	+13.8%
EBITDA Margin	14.3%	16.6%	14.6%	19.1%	—
PAT (Net Profit)	₹345 Cr	₹422 Cr	₹294 Cr	₹485 Cr	+12.1%
EPS	₹21.62	₹26.48	₹18.47	₹30.44	+12.1%
ROE	14.8%	16.1%	10.7%	15.8%	—
ROCE	18.7%	20.9%	16.5%	21.0%	—
Total Debt	₹250 Cr	₹239 Cr	₹274 Cr	₹229 Cr	-2.9%
Free Cash Flow	₹64 Cr	₹297 Cr	₹280 Cr	₹536 Cr	+103.3%

🟢 Revenue has grown at 3.3% a year over 3 years.

🟢 EBITDA has grown at 13.8% a year over 3 years.

🟢 EBITDA Margin has risen from 14.3% to 19.1% over 3 years (+4.8 pts).

🟢 PAT (Net Profit) has grown at 12.1% a year over 3 years.

🟢 EPS has grown at 12.1% a year over 3 years.

🟢 ROE has risen from 14.8% to 15.8% over 3 years (+1.0 pts).

🟢 ROCE has risen from 18.7% to 21.0% over 3 years (+2.2 pts).

🟢 Total Debt has shrunk at 2.9% a year over 3 years.

🟢 Free Cash Flow has grown at 103.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,029 Cr

Total Liabilities

₹899 Cr

Cash & Equivalents

₹56 Cr

Operating Cash Flow

₹664 Cr

Capex

-₹127 Cr

Shareholding (proxy)

Institutional Holding

30.2%

Insider Holding

62.7%

Corporate Actions

Next Earnings

23 Oct 2026

Dividend Rate

₹12

Ex-Dividend Date

21 Sept 2026

Analyst Consensus

Recommendations

16 Buy · 9 Hold · 1 Sell

Target Price (Mean)

₹1,390.2

+14.1% vs CMP

Target Range

₹1,000 – ₹1,700

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 positive2 mixed2 general

KAJARIACER Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Is Kajaria Ceramics the Best Stock in Its Sector? A Look at the Numbers

Univest, 13 Oct

Kajaria Ceramics share buyback worth Rs 297 crore opens on July 3: Entitlement ratio, other details to kno

The Economic Times, 01 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

600% dividend stock: Check amount per share, record date, payment timeline - Do you own?

Livemint, 21 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Is Now The Time To Put Kajaria Ceramics (NSE:KAJARIACER) On Your Watchlist?

Simply Wall Street, 02 Jun

Kajaria Ceramics Reports 56% YoY PAT Growth in Q1 FY27; Approves Rs 165 Crore Capacity Expansion

Dalal Street Investment Journal, 31 JulCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑