Archive · 24 Dec 2025
Kajaria Ceramics Detects Rs 20 Crore Fraud
Kajaria Ceramics found out that someone in their subsidiary, Kerovit Global, stole Rs 20 crore over the past two years.
The person in charge of money, the CFO, was fired.
The company is setting aside Rs 20 crore to cover the loss, but they think they can get back half of it.
A financial expert, Motilal Oswal, still thinks the company is a good investment and that the stock could go up by 19%.
However, the stock has been going down recently, and the company faces challenges like soft demand and competition.
The company is also expecting to grow its volume and revenue in the next few years.
Kajaria Ceramics detected a Rs 20 crore fraud at its subsidiary Kerovit Global over the past two years.
The fraud was committed through forged signatures and a fake vendor, with the subsidiary's CFO identified as the beneficiary and subsequently fired.
The company will set aside Rs 20 crore as exceptional expenses, with 50% of the amount expected to be recoverable.
Motilal Oswal Financial Services retained a 'Buy' rating on Kajaria Ceramics with a target price of Rs 1,252, implying a 19% upside.
The stock has fallen 9% in the last five trading sessions and 13% over the past year, facing challenges like soft demand and intense competition.
- Who
- Kajaria Ceramics and its subsidiary Kerovit Global
- What
- A Rs 20 crore fraud was detected and the CFO was fired
- When
- The fraud occurred over the past two years
- Where
- At Kerovit Global, a subsidiary of Kajaria Bathware
- Why
- The fraud was detected during vendor onboarding audits
Optimistic View
Pessimistic View
Stock Performance
Optimistic View
Motilal Oswal sees a 19% upside with a target price of Rs 1,252.
Pessimistic View
The stock has fallen 9% in the last five trading sessions and 13% over the past year.
Financial Health
Optimistic View
Projected 18% RoE, 25% RoCE, 36% RoIC, and annual free cash flow of over Rs 500 crore.
Pessimistic View
Sustaining EBITDA margins above 18% will be challenging due to soft demand and intense competition.
- Company
- Kajaria Ceramics
- Subsidiary Involved
- Kerovit Global
- Fraud Amount
- Rs 20 crore
- Fraud Duration
- Past two years
- Recovery Amount
- Rs 60 lakh (50% of the fraud amount is expected to be recoverable)
- CFO Status
- Fired
- Brokerage Rating (Motilal Oswal)
- Buy
- Target Price (Motilal Oswal)
- Rs 1,252
- Stock Performance (Last 5 Sessions)
- Fell 9%
- Stock Performance (Last 6 Months)
- Fell 11%
- Stock Performance (Last Year)
- Fell 13%
