 "Kajaria Ceramics touches lifetime high ahead of Q2 results")
Kajaria Ceramics has moved higher to its record high of Rs 916, up 3% on the BSE, ahead of its September quarter (Q2FY16) results scheduled for the day.
Emkay Global Financial Services expects Kajaria Ceramics to report 17.4% year on year (YoY) growth in its net profit on back of 10.3% YoY rise in net sales during the recently concluded quarter.
“Ceramic industry is going through weak demand environment driven by slowdown in project sales. We estimate 10% revenue growth primarily led by volume and change in product mix while realisations across the products have dropped by 2-3%,” the broking firm said in a Q2FY16 results preview.
Improved product mix and benefit of lower fuel cost to lead margin expansion as we expect 150bps improvement in margins (also on low base) to result into 21% EBIDTA (earnings before interest, taxes, depreciation, and amortization) growth and 17% net profit growth, added report.
Post Q1FY16 results, the stock has outperformed the market by appreciating 18% from Rs 775 on July 20 compared to nearly 4% decline in the Sensex.
At 12:31 pm, the stock was up 2% at Rs 910 on the BSE. A combined 192,432 shares changed hands on the counter on the BSE and NSE so far.
Emkay Global Financial Services expects Kajaria Ceramics to report 17.4% year on year (YoY) growth in its net profit on back of 10.3% YoY rise in net sales during the recently concluded quarter.
“Ceramic industry is going through weak demand environment driven by slowdown in project sales. We estimate 10% revenue growth primarily led by volume and change in product mix while realisations across the products have dropped by 2-3%,” the broking firm said in a Q2FY16 results preview.
Improved product mix and benefit of lower fuel cost to lead margin expansion as we expect 150bps improvement in margins (also on low base) to result into 21% EBIDTA (earnings before interest, taxes, depreciation, and amortization) growth and 17% net profit growth, added report.
Post Q1FY16 results, the stock has outperformed the market by appreciating 18% from Rs 775 on July 20 compared to nearly 4% decline in the Sensex.
At 12:31 pm, the stock was up 2% at Rs 910 on the BSE. A combined 192,432 shares changed hands on the counter on the BSE and NSE so far.