Anand Rathi's research report on Cera Sanitaryware
Amidst the subdued demand environment, Cera Sanitaryware reported a stable performance. Revenue grew 5.4% y/y to Rs4.2bn, largely supported by faucets as sanitaryware revenue was flat. The productmix change led to a 2% y/y rise in gross profit to Rs2.2bn, while higher employee expenses dragged EBITDA down 5.1% y/y to Rs551m. PAT slipped 1.1% y/y to Rs466m. We introduce FY28e and expect 12%/14% revenue/earnings CAGRs over FY25-28. Considering the 11% fall in the stock price in the past one month, we believe the risk-reward to be favourable.
Outlook
Also, significant cash on the books provide assurance; hence, we upgrade our rating on the stock to a Buy with a 12-mth TP of Rs8,956, 35x the average of FY27e/FY28e EPS (earlier Rs8,034, 35x FY27 earnings).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Cera Sanitaryware - 11082025 - anand