Nuvama has reiterated its hold rating on Kajaria Ceramics with a target price of ₹1,318, noting that while the company has taken several steps to drive long-term growth and efficiency, the benefits will not be immediate. Kajaria recently integrated its ceramic, polished vitrified tile (PVT), and glazed vitrified tile (GVT) divisions to eliminate overlaps and improve efficiency.
The company is also pursuing cost optimisation across segments, with bathware and adhesives identified as key drivers of faster growth. On the exports front, management expects volumes to ramp up as the global economy recovers, helping ease domestic oversupply pressures.
Nuvama has raised its EPS estimates for FY26, FY27, and FY28 by 5%, 9%, and 11% respectively, factoring in a sharp margin uptick alongside demand recovery. However, it maintained a hold stance, noting that while the company’s growth strategy is in the right direction, investors may need to wait longer to see meaningful results reflected in earnings.
Disclaimer: The views and recommendations made in this article are those of Nuvama. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
