Kajaria Ceramics Shares Dive on ₹20 Cr Fraud; Brokerage Still Sees 59% Upside

• Kajaria Ceramics shares fell for 7 consecutive days after a ₹20 crore fraud by the CFO of its subsidiary, Kajaria Bathware, was revealed.
• Dilip Kumar Maliwal, CFO of Kajaria Bathware, is accused of embezzling ₹20 crore over two years from Kerovit Global, a step-down subsidiary.
• Management asserts strong fundamentals, no other discrepancies, has terminated the CFO, filed a police complaint, and tightened internal controls.
• MK Global maintains a 'Buy' rating with a target of ₹1,550 (59% upside), praising management's response and tightened controls.
• Nuvama Wealth Management, however, reduced the company's P/E multiple due to corporate governance concerns, lowering its valuation.

Why It Matters: Despite a ₹20 Cr fraud and share dip, some brokerages predict significant upside for Kajaria Ceramics.