Exxaro Tiles Vs Kajaria Ceramics – Best Construction Material Stocks

Company Overview of Kajaria Ceramics Ltd

Kajaria Ceramics Limited, established in 1985, is India’s largest manufacturer of ceramic and vitrified tiles, with an annual capacity of 93.10 million square meters across nine plants. 

The company offers a diverse range of products, including ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitaryware, faucets and tile adhesives. 

Serving both domestic and international markets, Kajaria has a robust distribution network and exports to approximately 35 countries.   

Company Overview of Exxaro Tiles Ltd

Exxaro Tiles Limited, founded in 2007 and based in Ahmedabad, India, specializes in manufacturing and trading vitrified tiles under the “Exxaro” brand. Their diverse product range includes double charge, glazed vitrified and wall tiles, catering to residential, commercial and institutional projects. 

With a robust dealer network, Exxaro Tiles serves both domestic and international markets, exporting to over 13 countries, including Poland and the UAE. The company operates state-of-the-art manufacturing facilities and is led by Chairman and Managing Director Mukeshkumar Babubhai Patel. 

The Stock Performance of Kajaria Ceramics Limited

The table below displays the month-by-month stock performance of Kajaria Ceramics Ltd for the past year.

The Stock Performance of Exxaro Tiles Limited

The table below displays the month-by-month stock performance of Exxaro Tiles Ltd for the past year.

Fundamental Analysis of Kajaria Ceramics Ltd

Kajaria Ceramics Ltd is a prominent player in the Indian ceramic industry, specializing in the manufacturing of high-quality tiles and related products. Established in 1985, the company has established a strong presence in both domestic and international markets. With an extensive range of products, including ceramic and vitrified tiles, Kajaria caters to various segments, such as residential, commercial and industrial sectors. The company is committed to innovation and quality, leveraging advanced technology in its production processes.  

The stock is currently trading at ₹890.35, with a market capitalization of ₹14,808.34 crore. Despite a 5-year CAGR of 10.88% and a 5-year average net profit margin of 9.41%, recent performance has been weak, with a 1-year decline of 29.89% and a 6-month drop of 35.22%.   

• Close Price ( ₹ ): 890.35
• Market Cap ( Cr ): 14808.34
• Dividend Yield %: 1.29 
• 1Y Return %: -29.89
• 6M Return %: -35.22
• 1M Return %: -14.53
• 5Y CAGR %: 10.88
• % Away From 52W High: 77.31
• 5Y Avg Net Profit Margin %: 9.41 

Fundamental Analysis of Exxaro Tiles

Exxaro Tiles, established in 2008, specializes in manufacturing vitrified tiles for flooring solutions. With over 1,000 designs marketed under the “Exxaro” brand, the company operates two state-of-the-art facilities in Gujarat, boasting a combined annual production capacity of 14.6 million square meters. Their products are available across India and exported to more than 13 countries.  

The stock is currently priced at ₹8.07, with a market capitalization of ₹391.48 crore. Over the past year, it has declined by 27.56%, with a 1-month drop of 17.80% and a 6-month decline of 1.93%. The stock is trading 51.12% below its 52-week high, indicating a significant correction.  

• Close Price ( ₹ ): 8.07
• Market Cap ( Cr ): 391.48  
• 1Y Return %: -27.56
• 6M Return %: -1.93
• 1M Return %: -17.80 
• % Away From 52W High: 51.12  

Financial Comparison of Kajaria Ceramics and Exxaro Tiles

The table below shows a financial comparison of Kajaria Ceramics Ltd and Exxaro Tiles Ltd.

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of Kajaria Ceramics and Exxaro Tiles

The table below displays the dividend paid by Kajaria Ceramics, while Exxaro Tiles has not distributed any dividends yet. 

Advantages and Disadvantages of Investing in Kajaria Ceramics Limited

Kajaria Ceramics Ltd

The primary advantage of Kajaria Ceramics Ltd lies in its position as India’s largest tile manufacturer, offering a diverse product range. With a strong brand reputation, innovative designs and an extensive distribution network, the company continues to dominate the ceramic and vitrified tile industry.

1. Market Leadership – Kajaria Ceramics is the largest tile manufacturer in India, with an annual production capacity of over 93.10 million square meters, serving residential, commercial and industrial sectors with a wide variety of products.
2. Diverse Product Portfolio – The company offers ceramic, vitrified, glazed and polished tiles, along with sanitaryware and faucets, catering to diverse customer needs in the real estate, infrastructure and retail sectors.
3. Strong Distribution Network – Kajaria has an extensive pan-India distribution network with a strong presence in both urban and rural markets, supported by a network of dealers, retailers and company-owned showrooms.
4. Technological Innovation – The company invests in cutting-edge technology and automation, ensuring high-quality, durable and aesthetically appealing products that keep up with modern design trends and consumer preferences.
5. Financial Stability and Growth – With steady revenue growth and profitability, Kajaria Ceramics maintains a strong financial position, making it an attractive investment choice in the building materials and home improvement sector.

The main disadvantage of Kajaria Ceramics Ltd is its dependence on the real estate and construction sectors, which directly impact demand for its products. Any slowdown in these industries can affect sales, revenue growth and overall profitability for the company.

1. Exposure to Market Fluctuations – Since Kajaria’s revenue is closely linked to real estate and infrastructure projects, economic slowdowns or reduced construction activity can lead to lower demand for its tiles and sanitaryware products.
2. High Competition in the Industry – The ceramic and tile industry is highly competitive, with players like Somany Ceramics, Nitco and Asian Granito, making it challenging for Kajaria to maintain market share and pricing power.
3. Raw Material Price Volatility – The company relies on raw materials like clay, silica and natural gas and price fluctuations in these commodities can increase production costs, impacting profitability and operational efficiency.
4. Logistics and Supply Chain Challenges – Given the heavyweight nature of ceramic tiles, transportation and logistics costs are significant. Any inefficiencies in supply chain management can result in delays, increased expenses and reduced profit margins.
5. Regulatory and Environmental Concerns – The tile manufacturing process involves high energy consumption and emissions, making it subject to environmental regulations. Stricter government policies on emissions and sustainability could increase compliance costs and affect production efficiency.

Advantages and Disadvantages of Investing in Exxaro Tiles

Exxaro Tiles Ltd

The primary advantage of Exxaro Tiles Ltd lies in its specialization in vitrified tiles, catering to residential, commercial and institutional markets. With a strong manufacturing setup, innovative designs and a growing export presence, the company continues to expand its footprint in the ceramic tile industry.

1. Diverse Product Range – Exxaro Tiles offers double charge, glazed vitrified and digital wall tiles, catering to various customer needs across residential, commercial and industrial applications, ensuring a strong and diversified market presence.
2. Strong Manufacturing Capabilities – The company operates state-of-the-art production facilities, ensuring high-quality tile manufacturing, efficient production processes and the ability to scale operations as demand increases in both domestic and international markets.
3. Expanding Export Market – Exxaro Tiles has growing exports to over 13 countries, including Poland, UAE and other global markets, strengthening its international footprint and revenue diversification.
4. Innovative Design and Technology – The company focuses on modern tile designs, digital printing technology and sustainable manufacturing practices, offering aesthetically appealing and high-durability products to meet evolving market trends.
5. Growth in Infrastructure and Real Estate Demand – With increasing urbanization and infrastructure projects, Exxaro Tiles benefits from rising demand for quality tiles, positioning itself as a strong player in India’s growing construction and housing sectors.

The main disadvantage of Exxaro Tiles Ltd is its dependence on the real estate and construction sectors, which directly impact demand for its products. Any slowdown in these industries can affect sales, revenue growth and overall profitability for the company.

1. High Competition in the Tile Industry – Exxaro Tiles faces intense competition from larger players like Kajaria Ceramics, Somany Ceramics and Asian Granito, making it difficult to expand market share and maintain strong pricing power.
2. Dependence on Raw Material Costs – The company relies heavily on raw materials like clay, feldspar and silica, making it vulnerable to price fluctuations that can increase production costs and impact profit margins.
3. Limited Brand Recognition – Compared to industry leaders, Exxaro Tiles has lower brand visibility and faces challenges in expanding its dealer network, making it harder to compete in premium and high-margin market segments.
4. Logistics and Transportation Challenges – Given the heavyweight nature of ceramic tiles, transportation and logistics costs are significant. Inefficient supply chain management can result in delays, increased expenses and reduced profitability.
5. Regulatory and Environmental Compliance – The tile manufacturing process involves high energy consumption and emissions, making the company subject to government regulations and environmental policies, which could increase compliance costs and affect operational efficiency.

How to Invest in Exxaro Tiles and Kajaria Ceramics Stocks?

To invest in Exxaro Tiles Ltd, you need to open a demat and trading account with a reliable stockbroker, analyze the company’s financials and strategically execute trades. A trusted broker like Alice Blue can provide the necessary tools and support for efficient investing.

1. Open a Demat and Trading Account – Choose a registered stockbroker like Alice Blue to open a demat and trading account. This account enables you to buy, sell and hold Exxaro Tiles Ltd shares securely in electronic form.
2. Conduct Market Research – Analyze Exxaro Tiles’ financial performance, industry trends and market positioning before investing. Evaluating its growth prospects, competition and demand for vitrified tiles can help you make informed investment decisions.
3. Use a Reputable Stockbroker – Trading through a platform like Alice Blue ensures low brokerage fees, advanced trading tools and expert market insights, making stock tracking and trade execution seamless for investors.
4. Place a Buy Order – Once you decide on an investment amount, search for Exxaro Tiles Ltd on your broker’s trading platform, set your price and place a market or limit buy order based on your preferred strategy.
5. Monitor and Manage Investments – Keep track of stock performance, company news and market trends. Implement risk management strategies like stop-loss and profit booking to maximize returns while ensuring a well-balanced investment portfolio.

Kajaria Ceramics vs. Exxaro Tiles Limited- Conclusion

Kajaria Ceramics Ltd, India’s largest tile manufacturer, enjoys market leadership, a diverse product portfolio and strong brand recognition. Its extensive distribution network and financial stability make it a dominant player, though competition, raw material dependency and economic fluctuations pose challenges to sustained growth.

Exxaro Tiles focuses on vitrified tiles with a growing export market, offering modern designs and quality products. While its manufacturing capabilities and infrastructure demand drive growth, the company faces high competition, limited brand recognition and raw material price volatility, impacting profitability and market expansion.

Kajaria Ceramics vs. Exxaro Tiles – FAQ

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.