Motilal Oswal Recommends 'BUY' on Kajaria Ceramics, Sets Target at Rs 1057

• Kajaria Ceramics reported a soft quarter with flat tile volume and revenue due to weak demand and intense competition.
• Bathware and Adhesives segments showed growth of 9% and 72% YoY, respectively.
• EBITDA margin declined QoQ to 17.2% but improved significantly YoY by 395bp.
• Reported PAT was affected by extraordinary items totaling INR396m, including provisions for a new labor code and financial fraud.
• Motilal Oswal retains a 'BUY' rating on KJC with a target price of INR1,057, citing attractive valuation after a 30% stock correction.

Why It Matters: Motilal Oswal recommends buying Kajaria Ceramics, projecting a target of Rs 1057 despite a soft quarter.