HDFC Securities has upgraded Kajaria Ceramics to a higher rating following its latest post-Q1FY27 reviews. This upgrade comes after the company delivered strong Q1FY27 results with consolidated net profit rising 56% YoY to ₹171.03 crore from ₹110.31 crore in the previous year. Revenue from operations grew 20% year-on-year to ₹1,328.08 crore, reflecting robust demand in the core tiles business. The upgrade indicates improved analyst sentiment toward Kajaria's prospects following the company's impressive quarterly performance and strategic expansion plans.
Sun Pharmaceutical Industries retained its Buy rating with a revised target price of ₹2,320 from HDFC Securities. The brokerage highlighted strong growth in the India business and specialty medicines portfolio despite softness in the US generics segment. The company's future growth is expected to be driven by products including Ilumya, Cequa, Winlevi, Unloxcyt and Leqselvi. This maintains Sun Pharma's position among the top pharmaceutical stocks in focus.
Kajaria Ceramics delivered exceptional Q1FY27 results with standalone net profit growing 56% to ₹155.77 crore from ₹99.67 crore in the previous year. Standalone revenue increased to ₹1,190.08 crore from ₹1,007.32 crore, while basic earnings per share rose to ₹10.64 from ₹6.84. The tiles segment contributed ₹1,159.40 crore to revenue, up from ₹986.35 crore in Q1FY26, with segment results improving to ₹197.42 crore from ₹134.65 crore. The 'Others' segment, comprising adhesive, bathware, and sanitaryware, generated ₹168.68 crore in revenue with segment results of ₹20.72 crore, compared to ₹116.39 crore and ₹8.57 crore respectively in the prior year.
The Board approved a brown-field expansion at its Gailpur manufacturing facility in Rajasthan, adding 11 Million Square Metres (MSM) of annual production capacity for glazed vitrified tiles. This ₹165 crore project, funded through internal accruals, is expected to be completed by April 2027. Additionally, the company sanctioned an investment of up to ₹12.15 crore in Sunsire Solarpark Fourty Three Private Limited to secure captive solar and wind power for its Gailpur and Malootana plants. These strategic initiatives demonstrate Kajaria's commitment to capitalizing on sustained demand momentum while addressing rising power and fuel costs.
Multiple companies received positive analyst coverage in HDFC Securities' latest post-Q1FY27 reviews. The brokerage maintained a constructive stance on several names while upgrading Kajaria Ceramics. The comprehensive review covered Sun Pharma, Maruti Suzuki, ITC, Bajaj Finserv, ABB India, Thermax, LIC Housing Finance, Kajaria Ceramics, Data Patterns, Aether Industries, Niva Bupa Health Insurance, Mahanagar Gas and Aarti Industries. This broad coverage demonstrates the brokerage's comprehensive approach to market analysis and stock selection across various sectors.
