Kajaria Ceramics delivered exceptional Q4 FY26 results on April 30, with consolidated revenue increasing 12% year-on-year to ₹1,373 crores compared to the corresponding quarter last year. The company's net profit more than tripled to ₹156 crore from ₹43 crore a year ago, while EBITDA jumped 90% to ₹263 crore with margins expanding sharply to 19.16% from 11.33% in the year-ago period. Alongside the results, the board approved a share buyback worth up to ₹297 crore via the tender route, planning to repurchase up to 21.5 lakh shares at ₹1,380 per share, representing a 12% premium to Wednesday's closing price.
Goldman Sachs has maintained a buy rating on Kajaria Ceramics with a revised target price of ₹1,330 from ₹1,170 earlier, setting a 9% upside target price. The brokerage firm's bullish outlook is supported by several key factors: the company navigated recent geopolitical events and emerged stronger with market share gains seen as structural rather than temporary, product mix shift from ceramic to glazed vitrified tiles segment commanding premium supporting margin improvement, and gas price moderation expected in FY28 after remaining elevated in FY27. FY27 and FY28 earnings estimates have been raised 4-5% on product mix improvement and gas price assumptions.
CLSA maintains an Outperform rating on State Bank of India (SBI) with a target price of ₹1,275, citing the bank's healthy loan growth and focus on achieving 3% NIM guidance for FY27. According to CLSA's analysis, SBI is well positioned with healthy credit demand and RBI clarification on FCNR(B) expected to aid inflows. The brokerage notes that asset quality remains strong, though watchful of potential El Nino impacts. Jefferies maintains a Buy rating on HDFC AMC with a target price of ₹3,090, expressing confidence that the May 2026 slowdown was temporary following two months of strong flows, with core trends remaining stable. HDFC AMC is expanding its investment team to improve portfolio returns and frontline sales to grow GIFT/AIF/PMS businesses, expecting 21% AUM and 16% operating profit growth over two years.
The real estate sector is experiencing industry-wide double-digit sales growth in April-May, with easing geopolitical tensions driving a late quarter push for approvals by listed companies. As reported by Jefferies, major launches by Oberoi, Prestige, GPL, Sobha and DLF are skewing late June/early July, with expectations of 20%+ sales growth by Oberoi, GPL and Sobha. However, Lodha is expected to see sub 10% growth due to a very large base effect, while Prestige Estates and DLF will see large declines year-over-year given their substantial base. The sector momentum is supported by industry-wide positive trends and improved market conditions.
Macquarie highlights rural sentiment risks from weak monsoons, with rural-focused plays like Britannia and Dabur at potential risk from potential monsoon disruptions. The brokerage notes that past periods suggest weak monsoons can have sharp impact on rural incomes, citing the 2019 monsoon season where June rainfall was only 67% of LPA but July-September reached 105%, 115% and 152% respectively. Preferred consumer plays include Titan, Lenskart, Marico and HUL. However, the brokerage sees limited risk to food inflation despite monsoon concerns, with monsoon in latter months and spatial distribution being key factors to monitor.
