Kajaria Ceramics’ Q1FY26 performance has led to contrasting views from leading brokerages, with Goldman Sachs maintaining a bullish stance and Morgan Stanley staying cautious despite a profit beat.
Goldman Sachs has reiterated a Buy rating on Kajaria with a target price of ₹1,032 per share. The brokerage highlighted that Q1 EBITDA came in above expectations, supported by effective cost management. However, it noted that volume growth remained disappointing at just 1% year-on-year, with average selling prices (ASP) flat on a sequential basis. Goldman believes strong cost controls helped offset weak demand, delivering an earnings beat.
In contrast, Morgan Stanley maintained its Underweight rating on the stock, assigning a much lower target of ₹731 per share — implying a 41% downside from the current market price of ₹1,240.00. Despite adjusted PAT coming in 26% above estimates, driven by improved margins in the tile segment, the brokerage flagged concerns over stagnant tile volume growth. It noted that Q1 margins were the highest in six quarters, and working capital days remained stable year-on-year, but reiterated caution due to limited growth traction.
Disclaimer: The brokerage views expressed above are solely those of the respective firms. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
