India's Kajaria Ceramics misses Q1 profit view on weak demand

Kajaria Ceramics

23/07/2024 10:30

BENGALURU, July 23 (Reuters) - Indian tile maker Kajaria Ceramics  KAJR.NS  posted a first-quarter
profit that fell more than expected on Tuesday, as elections during the quarter led to softness in domestic
demand and on muted exports. 
    The company said its consolidated net profit fell to 898.2 million rupees ($10.7 million) in the quarter
ended June 30 from 1.08 billion rupees a year ago.
    Analysts, on average, had expected a profit of 989.5 million rupees, according to LSEG data. 
    For further earnings highlights, click: (Full story)
           
    KEY CONTEXT 
Demand for ceramic tiles was soft in the quarter on muted infrastructure spending during the national election,
which was spread across the April-June period. 
    Analysts also pointed to increased competition among domestic players as exports from India - one of the
world's largest exporters of ceramic tiles - slowed on account of the Red Sea Crisis.
    The U.S. seeking to impose anti-dumping duty on ceramic tiles from India further weighed on exports, reports
suggested. 
    
  
    PEER COMPARISON
                                 Valuation    Estimates (next 12 months)        Analysts' sentiment
                                 (next 12                                 
                                  months)                                 
                    RIC        PE      EV/EB  Revenue      Profit growth  Mean      # of      Stock to  Div
                                       ITDA   growth %     %              rating*   analysts  price     yield
                                                                                              target**  (%)
 Kajaria Ceramics    KAJR.NS    41.24  25.32     12.17         17.67      Buy             29    0.97        0.81
 Cera Sanitaryware   CERA.NS    42.55  30.95     11.20         10.47      Buy             12    1.05        0.67
 Somany Ceramics     SOCE.NS    21.82  11.59     10.23         35.56      Strong          18    0.86        0.39
                                                                          Buy                           
 Astral              ASTL.NS    75.62  46.13     20.51         31.96      Hold            21    1.04        0.17
 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
                
    APRIL-JUNE STOCK PERFORMANCE
  
  
    
-- All data from LSEG
-- $1 = 83.6720  Indian rupees



    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
APRIL-JUNE STOCK PERFORMANCE    https://tmsnrt.rs/46dkZGv
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Anisha Ajith in Bengaluru; Editing by Janane Venkatraman
)
 ((anisha.ajith@thomsonreuters.com;))