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Kajaria Ceramics Ltd

NSE: KAJARIACER BSE: 500233

934.20

(-0.61%)

Tue, 17 Feb 2026, 09:36 am

Kajaria Ceramics Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (5.7x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Kajaria Ceramics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Kajaria Ceramics's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Kajaria Ceramics's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current IN Building industry average.
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Cons

  • Cash flow for Kajaria Ceramics is expected to increase but not above the 50% threshold in 2 years time.
  • Kajaria Ceramics's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
  • Kajaria Ceramics's earnings growth is positive but not above the India market average.
  • Kajaria Ceramics's earnings are expected to decrease over the next year.
  • Kajaria Ceramics's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Kajaria Ceramics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Kajaria Ceramics's performance (ROE) is expected over the next 3 years.
  • Kajaria Ceramics's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Kajaria Ceramics's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
  • Kajaria Ceramics's revenue growth is positive but not above the India market average.

health

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Pros

  • Kajaria Ceramics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kajaria Ceramics is profitable, therefore cash runway is not a concern.
  • Kajaria Ceramics is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (319%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 11.2x debt.
  • Kajaria Ceramics's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (27.8% vs 6.1% today).
  • Interest payments on debt are well covered by earnings (EBIT is 90.8x coverage).
  • Kajaria Ceramics's level of debt (6.1%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Kajaria Ceramics board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Ashok's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Ashok's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Kajaria Ceramics has significant price volatility in the past 3 months.

    past

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    Pros

    • Kajaria Ceramics's 1-year earnings growth exceeds its 5-year average (20% vs 5.4%)
    • Kajaria Ceramics's year on year earnings growth rate has been positive over the past 5 years.
    • Kajaria Ceramics used its assets more efficiently than the IN Building industry average last year based on Return on Assets.
    • Kajaria Ceramics's earnings growth has exceeded the IN Building industry average in the past year (20% vs 2%).
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    Cons

    • Kajaria Ceramics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Kajaria Ceramics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • BSE:500233 is up 13.6% outperforming the Building industry which returned 6.6% over the past month.
    • BSE:500233 is up 13.6% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Kajaria Ceramics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Kajaria Ceramics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Kajaria Ceramics is overvalued based on assets compared to the IN Building industry average.
    • Kajaria Ceramics is poor value based on expected growth next year.
    • Kajaria Ceramics is overvalued based on earnings compared to the IN Building industry average.
    • Kajaria Ceramics is overvalued based on earnings compared to the India market.
    • 500233 underperformed the Building industry which returned -33.2% over the past year.
    • 500233 underperformed the Market in India which returned -14.5% over the past year.

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