KAJARIACER

Fundamental View-

Kajaria Ceramics is India’s largest ceramic and vitrified tiles manufacturer, with a dominant market presence across residential, commercial, and infrastructure segments. The company has a strong distribution network of over 1,800 dealers and a manufacturing capacity of over 85 MSM square meters annually. In FY24, Kajaria reported healthy revenue growth supported by improved demand in real estate and home improvement sectors. Operating margins remained steady around 15–16%, aided by better capacity utilization and cost efficiency. The company is virtually debt-free, has strong cash reserves, and consistently delivers healthy return ratios (ROCE ~22%, ROE ~18%). It also maintains a healthy dividend payout policy, enhancing shareholder value. With growing demand for premium tiles, urban housing expansion, and new product lines in bathware and plywood, Kajaria is well-positioned for long-term growth. Its fundamentals remain robust, backed by strong brand recall, balance sheet strength, and expanding retail reach. It is considered one of the most fundamentally sound mid-to-large cap stocks in the building materials space. Technical View- Based on the daily chart, Kajaria Ceramics is trading in a strong uptrend with consistent higher highs and higher lows. The stock is comfortably above its key EMAs (14, 50, and 100-day), showing strong technical support. The Parabolic SAR dots below the price and MACD in positive territory confirm bullish momentum. RSI is at 71.24, indicating strength but nearing overbought levels. The stock opened at 1190.30 and closed at 1188.60 after minor profit booking. On 22nd July, Kajaria is set to declare its quarterly results, which may add volatility. However, the overall trend remains strong. With 1100 as a key support zone, it can be considered for buy on dips, targeting 1250–1275 levels in the short term.