According to reports from Moneycontrol, Prabhudas Lilladher has upgraded Kajaria Ceramics from 'HOLD' to 'BUY' rating in its research report dated January 30, 2026. The brokerage has set a target price of ₹1,056 for the stock, valuing it at 28x Mar'28E EPS. The upgrade comes after recent correction in stock prices, with the brokerage tweaking its earnings estimates for FY27/FY28.
As reported by Moneycontrol, in Q3 FY26, Kajaria Ceramics volumes remained flat due to weak demand and dealer de-stocking, amid dealer churn, network rationalisation, SKU liquidation and higher crossselling. The management noted that January 2026 trends have turned positive and expects growth momentum to pick up ahead. The company has refrained from providing FY26 revenue guidance due to near-term demand softness.
According to the report, the management guided for EBITDA margins in the range of 17-18% for FY26. Kajaria Ceramics expects Industry tile exports to reach ₹160 billion in FY26, compared to ₹120 billion in 9MFY26. The brokerage projects a 5.0% CAGR in tiles volume over FY25-28E with consistent EBITDA margin of 17.0% in FY28.
As reported by Moneycontrol, the brokerage expects Revenue/EBITDA/PAT CAGR of 6.5%/15.0%/20.6% over FY25-28E respectively. The upgrade to 'BUY' rating reflects the brokerage's confidence in the company's recovery prospects and long-term growth potential in the tiles industry.
