Kajaria Ceramics rises; Jefferies starts coverage with 'buy'

Reuters Mumbai | Updated on May 02, 2019 Published on May 02, 2019

Shares of ceramics manufacturing company Kajaria Ceramics Ltd rose as much as 3.6 per cent to Rs 616.45, in their biggest intra-day per cent gain since March 29.

Jefferies has initiated coverage with “buy” rating and TP of Rs 730.

Kajaria has bounced up from its September 18 lows, aided by improving profit, Jefferies said.

Jefferies says the company is poised to benefit the most from a fillip to organised volumes, courtesy tightening compliance and the recent ban on coal gasifiers in Gujarat, which should shrink the price differential with unbranded players.

The brokerage says declining gas prices act as a near-term catalyst for the company's margins.

Around 2,30,577 shares changed hands at 0531 GMT, compared with the 30-day average of about 3,75,208 shares.

Up to Tuesday's close, the stock had risen 20.7 per cent this year.

Published on May 02, 2019
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