India's Kajaria Ceramics misses Q1 profit view on weak demand
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 (next 12 months) | Estimates (next 12 months) | Analysts' sentiment | |||||||
RIC | PE | EV/EBITDA | Revenue growth % | Profit growth % | Mean rating* | # of analysts | Stock to price target** | Div yield (%) | |
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 Buy | 18 | 0.86 | 0.39 |
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
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