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Our recent interaction with the management suggests that Previous Reco Buy Target Price Rs 100
11 / 10 10 6,135 20,509
industry demand remains encouraging helping it to boost revenues from higher trading, +75% in H1FY11 to 30% by FY12E
Capacity in high end segment to increase from 10% in FY10 Capex plans are on schedule 1) New vitrified plant to
EPS change FY11E/12E (%) Target Price change (%) Nifty Sensex
commission by Jan11; 2) Conversion of ceramic floor tiles into vitrified tiles by Feb11
Price Performance
(%) Absolute Rel. to Nifty
Source: Bloomberg
1M (6) (8)
3M (4) (5)
6M 12M 14 (0) 46 26
70
20
60
10
50
40 Dec-09
Source: Bloomberg
Stock Details
Sector Bloomberg Equity Capital (Rs mn) Face Value(Rs) No of shares o/s (mn) 52 Week H/L Market Cap (Rs bn/USD mn) Daily Avg Volume (No of sh) Daily Avg Turnover (US$mn) Ceramics KJC@IN 147 2 74 84/47 5/111 381039 0.7
Rohan Gupta rohan.gupta@emkayglobal.com +91 22 6612 1248 Pragya Bhardwaj pragya.bhardwaj@emkayglobal.com +91 22 6612 1272
Net YE-Mar FY09 FY10 FY11E FY12E Sales 6,649 7,355 9,055 10,663
Company Update
Kajaria Ceramics
Company Update
FY12E New Estimates 10,663 1,754 16.5% 737 10.0 % Change 9.4% 4.2% -80 9.8% 9.9%
Emkay Research
31 December 2010
Kajaria Ceramics
Company Update
Key Financials
Income Statement
Y/E, Mar (Rs. mn) Net Sales Growth (%) Expenditure Materials Consumed Employee Cost Other Exp EBITDA Growth (%) EBITDA margin (%) Depreciation EBIT EBIT margin (%) Other Income Interest expenses PBT Tax Effective tax rate (%) Adjusted PAT Growth (%) Net Margin (%) (Profit)/loss from JVs/Ass/MI Adjusted PAT After JVs/Ass/MI E/O items Reported PAT PAT after MI Growth (%) FY09 6,649 32.3 5,700 3,602 505 1,593 949 15.9 14.3 249 700 10.5 10 582 127 38 30.2 89 (40.7) 1.3 89 89 89 (40.7) FY10 7,355 10.6 6,207 3,644 613 1,951 1,148 21.0 15.6 267 881 12.0 8 375 514 156 30.3 359 302.8 4.9 359 359 359 302.8 FY11E 9,055 23.1 7,623 4,743 724 2,155 1,432 24.7 15.8 322 1,110 12.3 10 336 784 235 30.0 549 53.1 6.1 549 549 549 53.1 FY12E 10,663 17.8 8,908 5,622 800 2,486 1,754 22.5 16.5 351 1,403 13.2 10 360 1,053 316 30.0 737 34.3 6.9 737 737 737 34.3 Gross Block Less: Depreciation Net block Capital work in progress Investment Current Assets Inventories Sundry debtors Cash & bank balance Loans & advances Other current assets Current lia & Prov Current liabilities Provisions Net current assets Misc. exp Total Assets 5,015 1,738 3,277 0 34 2,968 1,385 678 79 827 872 830 42 2,096 5,407 5,435 1,988 3,448 25 34 2,976 1,403 773 45 756 1,413 1,198 216 1,563 5,070 6,711 2,310 4,401 40 34 3,509 1,737 868 148 756 1,597 1,364 233 1,911 6,386 6,751 2,661 4,090 30 34 4,140 2,045 1,022 217 856 1,728 1,461 267 2,412 6,566
Balance Sheet
Y/E, Mar (Rs. mn) Equity share capital Reserves & surplus Net worth Minority Interest Secured Loans Unsecured Loans Loan Funds Net deferred tax liability Total Liabilities 2,927 325 3,252 535 5,407 2,588 40 2,628 549 5,070 3,388 40 3,428 619 6,386 2,888 40 2,928 699 6,566 FY09 147 1,474 1,621 FY10 147 1,746 1,893 FY11E 147 2,192 2,339 FY12E 147 2,792 2,939
Cash Flow
Y/E, Mar (Rs. mn) PBT (Ex-Other income) Depreciation Interest Provided Other Non-Cash items Chg in working cap Tax paid Operating Cashflow Capital expenditure Free Cash Flow Other income Investments Investing Cashflow Equity Capital Raised Loans Taken / (Repaid) Interest Paid Dividend paid (incl tax) Income from investments Others Financing Cashflow Net chg in cash Opening cash position Closing cash position FY09 118 249 274 3 (92) -33 519 (121) 398 10 10 (121) (274) (17) 0 0 -412 -4 83 79 FY10 506 267 241 7 406 -117 1,310 (471) 839 8 8 (623) (241) (17) 0 0 -882 -34 79 45 FY11E 774 322 336 (262) -165 1,005 (1,290) -285 10 10 800 (336) (86) 0 0 378 103 45 148 FY12E 1,043 351 360 (466) -236 1,052 (30) 1,022 10 10 (500) (360) (103) 0 0 -963 69 148 217
Key Ratios
Y/E, Mar Profitability (%) EBITDA Margin Net Margin ROCE ROE RoIC Per Share Data (Rs) EPS CEPS BVPS DPS Valuations (x) PER P/CEPS P/BV EV / Sales EV / EBITDA Dividend Yield (%) Gearing Ratio (x) Net Debt/ Equity Net Debt/EBIDTA Working Cap Cycle (days) 1.9 3.3 68 1.3 2.2 49 1.4 2.3 50 0.9 1.5 55 61.2 16.1 3.4 1.3 9.0 0.3 15.2 8.7 2.9 1.1 7.0 1.4 9.9 6.3 2.3 1.0 6.1 1.6 7.4 5.0 1.9 0.8 4.6 2.2 1.2 4.6 22.0 0.2 4.9 8.5 25.7 1.0 7.5 11.8 31.8 1.2 10.0 14.8 39.9 1.6 14.3 1.3 13.1 5.6 13.2 15.6 4.9 17.0 20.4 17.2 15.8 6.1 19.6 25.9 20.0 16.5 6.9 21.8 27.9 22.5 FY09 FY10 FY11E FY12E
Emkay Research
31 December 2010
Kajaria Ceramics
Company Update
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Emkay Research
31 December 2010
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