1. At a Glance

Kajaria isn’t just selling tiles—it’s selling middle-class Indian dreams, one glossy floor at a time. At ₹1,210/share, this ₹19,244 Cr market cap company is India’s #1 tile maker and the world’s #8. With Akshay Kumar, Ranveer Singh, and Anushka Sharma telling you to buy tiles (as if they install them themselves), Kajaria has managed to turn bathroom fittings into Bollywood blockbusters. But behind the shiny vitrified glaze is a business growing at 8–10% while trading at FMCG-level valuations of 54x PE.

2. Introduction

Kajaria Ceramics is that one relative who flaunts imported Italian flooring, but when you check the bill, you find “Made in Morbi, Gujarat.” The company has built a mega distribution network (1,800+ dealers, 400 exclusive showrooms) and diversified into sanitaryware, plywood, adhesives—basically, anything that touches cement.

Financially, Kajaria looks like the Reliance of tiles: steady ROE ~13%, ROCE ~17%, OPM ~14%. Not explosive growth, but rock-solid dominance. Sales CAGR 10.5% over 5 years, profits CAGR ~6%. The catch? Stock trades at PE 54.7 vs industry ~47. Investors are paying Maruti money for Hero Splendor growth.

But let’s be honest: in a country where half of Instagram reels are “new home reveals,” tile demand isn’t going anywhere. The only risk? Chinese imports and Somany trying to play cool.

3. Business Model – WTF Do They Even Do?

Kajaria’s business is deceptively simple:

• Tiles (88% revenue): Ceramic wall/floor tiles, polished & glazed vitrified tiles. Basically, what you stand on while admiring your new 2BHK EMI trap.
• Sanitaryware & Faucets (8%): Sold under “Kerovit.” Fancy names, but still just thrones and taps.
• Plywood & Laminates (2%): Because why stop at floors when you can also own cupboards.
• Adhesives (1%): To make sure your “Italian finish” doesn’t come off like cheap wallpaper.

Production mix (9MFY24):

• Own manufacturing – 51%
• Subsidiaries – 17%
• Outsourcing – 21%
• Sanitaryware/Faucets – 8%
• Plywood – 2%
• Adhesive – 1%

Subsidiaries: From Kajaria Vitrified (Morbi) to Kerovit Global (Sanitaryware in Gujarat) and even a Nepal JV—the company loves planting flags everywhere.

So yes, Kajaria’s model is: Make tiles → Market with Bollywood → Sell at premium → Repeat.

4. Financials Overview

Commentary:
Quarter looked like a Diwali sale—flat revenue, but EBITDA margin improved to 17%, EPS doubled QoQ. Investors clapped, but stock still trades at FMCG valuation.

5. Valuation – Fair Value Range Only

• P/E method: EPS FY25 = ₹19.7. At 25–35x (reasonable for consumer durable), fair value = ₹490–₹690.
• EV/EBITDA: EV ₹18,935 Cr / FY25 EBITDA ₹626 Cr = 30x. Peers trade at ~15–20x. Fair value = ₹650–₹850.
• DCF: Assume 8% CAGR revenue, OPM 14%, WACC 10%, terminal growth 3% → ₹700–₹900.

👉 Fair Value Range: ₹490–₹900 per share.
Disclaimer: Educational purpose only, not investment advice.

6. What’s Cooking – News, Triggers, Drama

• Dividend: Rs.4/share final dividend declared. Investors got