Kajaria Ceramics - Maintained BUY on sustained topline growth - Emkay

Reco: BUY
CMP: Rs 221
Target Price: Rs 275

- Kajaria's Q4FY13 results were encouraging with revenues growth of 20% to Rs 4.5bn and PAT growth of 31% to Rs 308mn which was marginally above our est

- Strong volume growth of 15% in FY13 driven by various JVs done by the company and price increase of 5.6% due to change in product mix contributed to revenue growth in FY13

- JV base model to continue to drive growth as it has dropped its plan to enter into new geography like Ethiopia and subsequently taken write down of Rs 30mn in Q4FY13

- We maintain our BUY reco considering Kajaria's sustainable growth (22% CAGR FY13-15E) and strong return ratios (RoE >30%). We introduce our FY15 est eps of Rs 21

Source : Equity Bulls

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