Midcap Stock Declared Interim Dividend Of Rs 6, Record Date Fixed, Should You Buy?

Kajaria Ceramics Ltd, a midcap company from Building Material Sector has declared an interim Dividend in their meeting held on January 28, 2023. The company also fixed the recorded date for the declared dividend. Leading brokerage firm ICICI Direct post-Q3 FY23 results has initiated coverage on Kajaria Ceramics with a positive outlook. Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India with current annual capacity of 84.5 mn sq metre (MSM). Here are the key takeaways about the stock:

Kajaria Ceramics' stock performance

The current market price of the stock of Kajaria Ceramics is Rs 1,065.75 apiece, down 2.90% from the previous close of Rs 1,097 apiece. The stock's 52-week high is Rs 1,351.95 apiece and the 52-week low is Rs 886.30 apiece, respectively. It has a market capitalisation of Rs 16,970.21 crore.

The share price gained 0.86% in a week. Whereas in the last 1 month, it declined by 8.14% and in 1 year it declined by 19,.07%, respectively. It gave 84.74% positive return in the last 3 years and 57.75% positive return in the last 5 years, respectively. 

Kajaria Ceramics declares an interim dividend of Rs. 6

The Board of Directors of Kajaria Ceramics Ltd. in their meeting held on January 28, 2023 declared an interim dividend of Rs 6. In their regulatory filing to BSE/NSE the Board of Directors of the company stated, "An Interim Dividend of Rs. 6 per share of Re. 1 each for the financial year 2022-23 and Wednesday, February 8, 2023 as the 'Record Date' for determining entitlement of members of the Company to the aforesaid Interim Dividend. The payment of the said Interim Dividend will be made on/before February 26, 2023." 

ICICI Direct maintains "Buy" on the stock

The brokerage has recommended investors to buy the stock with a target price of Rs 1,310 apiece. Buying the stock at the current market price is likely to fetch you potential gains of up to 23%.

According to the brokerage, Kajaria's share price has grown at ~12% CAGR over the past five years (from ~Rs 613 in January, 2023 to ~Rs 1098 currently). "Kajaria with a net cash balance sheet and superior brand, is a solid play on the tiles sector with expanding reach to tier 2/3 cities. With gas price easing & alternate fuel use, margin recovery is on the anvil. Thus, we maintain BUY. We value Kajaria at Rs 1310/share, at 36x FY25 P/E," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.