The ceramics sector presents significant investment opportunities through public offerings of tile, sanitaryware and industrial ceramic manufacturers. These IPOs enable companies to raise capital for expansion, modernization and market growth while offering investors exposure to India’s growing construction sector.
Content:
- Overview of the Ceramics IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Ceramics Sector IPOs
- Disadvantages of Investing in Ceramics Sector IPOs
- Role of the Ceramics Industry in the Economy
- How to invest in Ceramics IPOs?
- Future Outlook of Ceramics IPOs in India
- Ceramics IPOs in India – FAQ
Overview of the Ceramics IPOs in India
The ceramics sector features prominent manufacturers of tiles, sanitaryware and industrial ceramics seeking public funding for expansion. These companies leverage growing construction demand, infrastructure development and real estate growth while offering investors participation in India’s manufacturing advancement.
The sector demonstrates strong potential through modernization initiatives, capacity expansion plans, export opportunities and growing domestic demand across residential and commercial construction segments.
Companies focus on technological upgrades, product innovation, design capabilities and market expansion while maintaining competitive advantages through efficient manufacturing and distribution networks.
IPO Fundamental Analysis
Exxaro Tiles Limited
Exxaro Tiles Limited reported its financial performance for FY24, highlighting stability in revenues, moderate profitability and strong asset growth compared to FY23. The data emphasizes the company’s ability to navigate market dynamics and maintain operational resilience.
Revenue Trend: Revenue declined to ₹301.68 crores in FY24 from ₹317.09 crores in FY23, showing a 4.86% decrease. Expenses also fell to ₹277.16 crores compared to ₹283.61 crores in FY23.
Equity and Liabilities: The equity capital remained constant at ₹44.74 crores in FY24. Reserves slightly improved to ₹231.99 crores from ₹229.31 crores. Total liabilities increased to ₹486.34 crores from ₹467.55 crores.
Profitability: Operating profit declined to ₹24.52 crores in FY24 from ₹33.49 crores in FY23. Operating Profit Margin (OPM) reduced to 8.07% in FY24 from 10.47% in FY23, reflecting tighter margins.
Earnings per Share (EPS): EPS decreased to ₹0.50 in FY24 from ₹1.63 in FY23, indicating a drop in shareholder earnings during the fiscal year.
Return on Net Worth (RoNW): Net profit fell to ₹2.25 crores in FY24 from ₹7.27 crores in FY23, impacting RoNW, which reflects a decline in the company’s profitability.
Financial Position: Total assets grew to ₹486.34 crores in FY24 from ₹467.55 crores in FY23, supported by an increase in current assets to ₹289.87 crores from ₹257.12 crores, while non-current assets reduced to ₹196.47 crores.
Manoj Ceramic Limited
Manoj Ceramic Limited demonstrated substantial growth in FY24 compared to FY23, reflecting its robust operational efficiency and financial health. Revenue, profitability and equity metrics highlight significant improvements, indicating a promising outlook for the company in the near future.
Revenue Trend: Sales grew to ₹96 crores in FY24 from ₹74 crores in FY23, marking a 29.73% increase. Expenses rose to ₹81 crores in FY24 compared to ₹65 crores in FY23, with an improved OPM of 15%.
Equity and Liabilities: Equity capital increased to ₹8 crores in FY24 from ₹2 crores in FY23. Reserves grew to ₹21 crores, while total liabilities surged to ₹105 crores, up from ₹79 crores in FY23.
Profitability: Operating profit rose to ₹14 crores in FY24 from ₹9 crores in FY23 and net profit increased to ₹6 crores from ₹4 crores, driven by enhanced operational performance and higher revenue.
Earnings per Share (EPS): EPS dropped to ₹7.30 in FY24 from ₹245.33 in FY23 due to equity dilution but still reflects positive earnings growth aligned with increasing profitability.
Return on Net Worth (RoNW): RoNW remained strong at 31% in FY24, consistent with the previous year, showcasing sustained profitability relative to shareholder equity.
Financial Position: Total assets increased to ₹105 crores in FY24 from ₹79 crores in FY23, driven by growth in other assets (₹104 crores). Borrowings rose to ₹60 crores, reflecting higher financial leverage.
Asian Granito India Ltd
Asian Granito India Ltd presents its financial performance for FY24, showcasing significant changes in revenue, profitability and financial position compared to FY23. Key highlights include improvements in operational metrics, equity stability and a focus on asset utilization despite challenges in profitability.
Revenue Trend: Revenue slightly decreased to ₹1,531 crores in FY24 from ₹1,563 crores in FY23, reflecting a marginal dip of 2%. Expenses reduced to ₹1,480 crores from ₹1,631 crores, improving cost management.
Equity and Liabilities: Equity capital remained stable at ₹126.75 crores in FY24. Reserves marginally declined to ₹1,116 crores from ₹1,129 crores. Total liabilities stood at ₹1,907 crores, slightly down from ₹1,922 crores in FY23.
Profitability: Operating profit rebounded to ₹50.98 crores in FY24 from a loss of ₹68.11 crores in FY23. OPM improved to 3.30% from -4.31%, driven by better cost efficiency.
Earnings per Share (EPS): EPS improved to -₹0.97 in FY24 from -₹5.74 in FY23, reflecting reduced losses. Efforts in operational efficiency contributed to this recovery.
Return on Net Worth (RoNW): RoNW was impacted due to negative net profits of -₹19.91 crores in FY24, compared to a loss of ₹86.91 crores in FY23.
Financial Position: Total assets stood at ₹1,907 crores in FY24, slightly declining from ₹1,922 crores in FY23. Non-current assets increased to ₹806.38 crores, while contingent liabilities reduced to ₹199.06 crores from ₹294.81 crores.
IPO Financial Analysis
Exxaro Tiles Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 302 | 317 | 325 |
| Expenses | 277 | 284 | 277 |
| Operating Profit | 25 | 33 | 48 |
| OPM % | 8.07 | 10.47 | 14.83 |
| Other Income | 2.24 | 1.71 | 1.33 |
| EBITDA | 27 | 36 | 50 |
| Interest | 14.22 | 9.30 | 10 |
| Depreciation | ₹ 9 | ₹ 16 | ₹ 14 |
| Profit Before Tax | 3 | 10 | 26 |
| Tax % | 29.55 | 28.25 | 30.77 |
| Net Profit | 2 | 7 | 18 |
| EPS | 0.5 | 1.63 | 4.05 |
* Consolidated Figures in Rs. Crores
Manoj Ceramic Limited
| Mar-24 | Mar-23 | Mar-22 | |
| Sales | 96.00 | 74.00 | 43.00 |
| Expenses | 81.00 | 65.00 | 39.00 |
| Operating Profit | 14.00 | 9.00 | 4.00 |
| OPM % | 0.15 | 0.12 | 0.09 |
| Other Income | 1.00 | 1.00 | 2.00 |
| Interest | 7.00 | 5.00 | 4.00 |
| Depreciation | 0.00 | 0.00 | 0.00 |
| Profit before tax | 8.00 | 5.00 | 1.00 |
| Tax % | 0.28 | 0.26 | 0.24 |
| Net Profit | 6.00 | 4.00 | 1.00 |
| EPS in Rs | 7.30 | 245.33 | 63.33 |
* Consolidated Figures in Rs. Crores
Asian Granito India Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,531 | 1,563 | 1,564 |
| Expenses | 1,480 | 1,631 | 1,439 |
| Operating Profit | 51 | -68 | 125 |
| OPM % | 3.3 | -4.31 | 7.75 |
| Other Income | 12.43 | 16.76 | 44.36 |
| EBITDA | 63 | -51 | 169 |
| Interest | 31.35 | 26.95 | 26 |
| Depreciation | ₹ 47 | ₹ 34 | ₹ 30 |
| Profit Before Tax | -15 | -112 | 113 |
| Tax % | -32.92 | 22.71 | 19.2 |
| Net Profit | -20 | -87 | 92 |
| EPS | -0.97 | -5.74 | 16.2 |
| Dividend Payout % | 0 | 0 | 4 |
* Consolidated Figures in Rs. Crores
About the Company
Exxaro Tiles Limited
Exxaro Tiles Limited is a prominent manufacturer of vitrified tiles in India, catering to both residential and commercial sectors. Established with a focus on innovation, the company offers a wide range of tiles known for their durability and aesthetic appeal.
It operates with a strong distribution network and advanced manufacturing facilities. Exxaro Tiles continues to expand its portfolio, meeting the growing demands of domestic and international markets while maintaining a focus on quality and customer satisfaction.
Manoj Ceramic Limited
Manoj Ceramic Limited specializes in ceramic and vitrified tiles, providing innovative and cost-effective solutions for the construction industry. The company has established itself as a reliable player, offering a diverse product range suitable for various applications.
With a focus on sustainable practices, Manoj Ceramic leverages modern technology in its production processes. Its commitment to quality and timely delivery ensures strong relationships with clients and steady growth in competitive markets.
Asian Granito India Ltd
Asian Granito India Ltd is one of India’s leading tile manufacturers, known for its extensive range of ceramic, vitrified and marble products. The company focuses on delivering high-quality, stylish and durable solutions to enhance living and working spaces.
With a strong domestic presence and expanding global footprint, the company emphasizes innovation and design excellence. Asian Granito leverages advanced technology and sustainable practices, establishing a trusted reputation in the building materials industry.
Advantages of Investing in Ceramics Sector IPOs
The main advantage of investing in ceramics sector IPOs is their potential for high growth, driven by demand in real estate and infrastructure. These IPOs often provide diversification, exposure to innovation and opportunities to benefit from expanding global markets and increasing domestic consumption trends.
- Growing Demand: Ceramics sector IPOs benefit from increasing demand in real estate and infrastructure projects, driven by urbanization, industrial expansion and the growing preference for durable, aesthetic materials in residential and commercial spaces.
- Innovation Exposure: Investing in ceramics IPOs offers access to companies driving innovation in advanced ceramics, which are used in cutting-edge industries like electronics, aerospace and healthcare, ensuring diverse growth opportunities.
- Global Market Expansion: Many ceramics companies are tapping into export markets, leveraging demand for high-quality products globally, providing investors with exposure to international growth and currency diversification benefits.
- Resilience to Economic Fluctuations: The ceramics sector often shows stability during economic shifts due to its essential role in construction and industrial applications, offering a relatively safe investment avenue compared to volatile industries.
- Attractive Valuation Potential: IPOs in the ceramics sector can present attractive entry points for investors, as many companies showcase strong financials, market positioning and long-term growth prospects during their public listing phases.
Disadvantages of Investing in Ceramics Sector IPOs
The main disadvantage of investing in ceramics sector IPOs is their vulnerability to fluctuating raw material costs and energy prices. Additionally, dependency on cyclical industries like construction and exports exposes investors to economic downturns, impacting profitability and growth prospects.
- Raw Material Costs: Ceramics sector companies face fluctuating raw material prices, such as clay and silica, directly impacting production costs and profit margins, making the IPOs sensitive to market volatility.
- Energy Dependency: High energy consumption in ceramics manufacturing exposes companies to rising energy costs, reducing profitability during periods of fuel price hikes or supply disruptions.
- Cyclical Industry Risks: Dependency on construction and real estate markets makes ceramics IPOs vulnerable to economic downturns, as reduced infrastructure investments can significantly impact demand.
- Export Challenges: Export-oriented ceramics companies face risks from changing international trade policies, currency fluctuations and geopolitical tensions, which may affect revenue and profitability.
- Intense Competition: The ceramics sector is highly competitive, with pressure from global players and local manufacturers potentially limiting growth, impacting pricing power and affecting returns for investors in IPOs.
Role of the Ceramics Industry in the Economy
The main role of the ceramics industry in the economy is fostering infrastructure and real estate growth, creating employment and supporting exports. It contributes to industrial innovation, enabling advancements in electronics, healthcare and aerospace while strengthening domestic manufacturing capabilities and driving economic development.
- Infrastructure Support: The ceramics industry plays a key role in building essential infrastructure and real estate by providing durable materials like tiles and sanitaryware, directly boosting construction and urban development.
- Employment Generation: The sector generates employment across manufacturing, design and export segments, supporting both skilled and unskilled labour, particularly in rural and semi-urban areas.
- Export Contribution: Ceramics are a significant export product, earning valuable foreign exchange and enhancing global trade relations through high-quality exports to developed and emerging markets.
- Industrial Advancements: Advanced ceramics enable innovations in electronics, aerospace and healthcare industries, supporting technological progress and contributing to high-value manufacturing.
- Domestic Manufacturing Growth: The ceramics industry strengthens domestic manufacturing by utilizing local raw materials, fostering economic resilience and reducing reliance on imports.
How to invest in Ceramics IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements and thoroughly research upcoming ceramics sector IPOs through detailed fundamental analysis of business models and growth prospects.
The investment process requires evaluating manufacturing capabilities, distribution networks, brand strength, market position and growth strategies while considering sector dynamics and the competitive landscape.
Success depends on proper timing, adequate funding, a systematic approach and an understanding of factors affecting ceramic industry growth including construction sector trends and regulatory policies.
Future Outlook of Ceramics IPOs in India
The ceramics sector demonstrates promising growth potential with increasing construction activities, infrastructure development, real estate expansion and growing export opportunities driving demand for quality ceramic products.
Industry modernization, technological advancement, design innovation and market expansion initiatives indicate positive prospects for future IPOs supported by government initiatives and infrastructure development.
Growth opportunities emerge from urban development projects, housing schemes, commercial construction and export markets while companies focus on capacity expansion and product diversification.
Ceramics IPOs in India – FAQ
Ceramics sector IPOs represent public offerings from manufacturers of tiles, sanitaryware and industrial ceramics seeking capital for expansion. These offerings enable investors to participate in India’s growing construction and manufacturing sectors.
Leading ceramics manufacturers including Kajaria Ceramics, Somany Ceramics and Asian Granito have successfully listed on Indian exchanges, offering investors exposure to the growing ceramics and construction sectors.
Ceramics IPOs provide strategic investment opportunities in India’s manufacturing growth, offering exposure to construction sector expansion, infrastructure development and export opportunities through established manufacturing companies.
Kajaria Ceramics’ public offering marked a significant milestone in the ceramics sector, demonstrating strong market acceptance and setting benchmarks for industry valuations through successful listing.
Begin by opening a trading account through Alice Blue, completing KYC requirements, analysing manufacturing capabilities, studying market position, evaluating growth prospects and maintaining adequate funds for subscription.
Ceramics sector IPOs offer substantial growth potential through infrastructure development, real estate expansion, export opportunities and increasing domestic demand for quality ceramic products.
Historical performance indicates strong profitability potential, though returns depend on construction sector growth, raw material costs, energy prices and company-specific operational efficiencies.
Market observers anticipate new ceramics sector IPOs, driven by expansion needs, modernization requirements and growing market opportunities in the construction and export sectors.
Access comprehensive research through Alice Blue’s dedicated research portal, covering manufacturing metrics, market analysis, growth opportunities and detailed sector reports for informed decision-making.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
