Prabhudas Lilladher Recommends 'BUY' on Kajaria Ceramics; Sets Target at Rs 1056

• Prabhudas Lilladher upgraded Kajaria Ceramics to 'BUY' from 'HOLD' due to recent stock price correction.
• The revised target price is Rs 1,056, valuing the stock at 28x Mar’28E EPS.
• Management expects FY26 EBITDA margins of 17-18%, despite near-term demand softness and flat Q3 FY26 volumes.
• January 2026 trends show positive signs, with growth momentum expected to pick up.
• Kajaria Ceramics anticipates industry tile exports to reach Rs 160bn in FY26.