Kajaria Ceramics Limited Valuation
KAJARIACER · Consumer Durables · Current price ₹1,218.8
Is Kajaria Ceramics Limited undervalued?
We estimate the fair value of Kajaria Ceramics Limited at ₹311 per share, against a market price of ₹1,226. That puts the share price about -74.6% above our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 2 methods: Discounted cash flow (2-stage) (₹284), PEG (growth-implied P/E) (₹414). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Kajaria Ceramics Limited spans ₹279 to ₹414. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
Kajaria Ceramics Limited trades at a P/E of 40.0x and a P/B of 6.4x, with a dividend yield of 1.1%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for Kajaria Ceramics Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹279 – ₹414
Why this method for this business
The DCF model is appropriate for a mature, asset-light business with stable cash flows, while the PEG model captures growth-implied valuation based on earnings power and a durable moat.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path
- relative_pe: Missing required inputs for multiple-based valuation
- peg: Used as a secondary model to capture growth-implied P/E
What was missing
- Lack of forward EPS estimates for precise PEG modeling
- Limited analyst coverage for relative PE valuation
What drives it
15 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 348 ₹cr
- Net debt
- 173.1 ₹cr
- Earnings growth
- 12.1% CAGR
- EPS (TTM)
- 34.28 ₹/share
fcf_norm (median ≤5y positive)
total_debt − cash
computed
computed
- Discount rate (r)
- 14.78%
- Beta
- 1.05
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 9.53%
- Fade shape
- linear
- Terminal growth (g)
- 5.4%
- Stage-1 years
- 9 y
pat_cagr_5y
lifecycle Mature
macro terminal × quality premium
lifecycle Mature horizon
- Lifecycle stage
- Mature
- Quality premium
- 1.08×
forecast engine (L20)
moat Narrow + capital allocation
- Path
- FCFE
- Terminal-value fraction
- 0.478
- Growth-implied P/E
- 12.1×
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
min(growth, 30)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Kajaria Ceramics Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyUnderstand the ratios
More on Kajaria Ceramics Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.