Although lower gas prices could offer some relief on margins
The combined market size of the building material sector could touch Rs 2.7 trillion by FY26 from Rs 1.3 trillion in FY22
The broader markets have pulled back sharply, with the benchmarks Sensex and Nifty 50 now up 15 per cent each from the June lows.
Slowdown in construction activity, high inventory levels and cost spike key negatives
Analysts have downgraded the related sectors, and have cut earnings estimates for FY23 and FY24 factoring the near-term challenges
Tiles maker Kajaria Ceramics on Wednesday announced the launch of its largest store in the country to sell tiles and bathware products. The 100th Kajaria Eternity World showroom, which has come up in an 11,000 square feet area in Lajpat Nagar, offers tiles and Kerovit bathware products under one roof. "Delhi is one of our most important marketplaces. This centrally positioned store will not only serve the residents of Delhi but also the people of the NCR region," Kajaria Ceramics Chairman & Managing Director Ashok Kajaria said in a statement. Kajaria Eternity is the company's premium brand, offering glazed vitrified tiles. "A bathroom is an essential part of any household...This is only the beginning; we intend to open more large stores across India, Kajaria Bathware Managing Director Rishi Kajaria noted. The store will also function as a resource centre where experienced professionals will teach customers how to make the most of their bathrooms, he said.
Tiles maker Kajaria Ceramics Ltd on Friday reported a 3 per cent rise in consolidated net profit at Rs 124.73 crore for the third quarter ended December 31.
Q3 results point to the trend; consolidation will continue, say analysts
The company said its operating margins have touched a new high of 21.68 per cent in the October-December quarter
The Indian tile industry is estimated to be worth nearly Rs 39,000 crore per year
In the past three days, Somany Ceramics (up 19 per cent) Kajaria Ceramics (9 per cent) have outperformed the S&P BSE Sensex, which up 2.4 per cent during this period
There is a lot of uncertainty and clear trend is not visible on the charts
Volume growth, lower costs and stable pricing are the positives
Kajaria is the largest tile manufacturer in India and leads the category in every single parameter -- capacity, production volume, sales figures, variety of designs and of course, the turnover
Orient Bell, Murudeshwar Ceramics, Asian Granito India, Nitco, Kajaria Ceramics and Somany Ceramics were up in the range of 4% to 14% on BSE.
Total expenses during the quarter went up 1.62% to Rs 585.07 crore
The stock dipped nearly 11% to Rs 650 after reported a single digit growth in consolidated net profit at Rs 64 crore for the quarter ended September 30, 2016.
In past nine-months, the stock of Kajaria Ceramics zoomed 69% compared to 5% rise in the Nifty 50 index.