Cera Sanitaryware
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Cera Sanitaryware's management has expressed a confident outlook for FY27, driven by strong volume growth and a successful transition to higher price points, despite facing temporary margin pressures from one-time costs and raw material inflation. The company's strategic focus on expanding its faucetware capacity and enhancing brand visibility through a significant marketing campaign positions it well for sustained revenue growth, with management targeting an 18-20% increase in revenue and 13.5-14% EBITDA margins. Vista's financial outlook aligns with these developments, forecasting stable revenue growth and margins, supported by a favorable retail-to-institutional sales mix and prudent capital allocation. The building materials industry is experiencing expansion, with organized players like Cera benefiting from improved pricing power and stable demand. However, potential headwinds include rising raw material costs and competition from smaller manufacturers. Over the next 12-24 months, key opportunities lie in the successful execution of capacity expansions and brand initiatives, while watchpoints include input cost volatility and the execution of supply chain diversification strategies
Why We Like This Stock
- Management's focus on expanding faucetware capacity and brand visibility is expected to drive revenue growth
- The company's strategic pricing initiatives are likely to enhance margins despite current pressures
- Cera is positioned to capture market share from unorganized players due to its strong brand and operational efficiencies
Things To Watch Out For
- Rising raw material costs could pressure margins and operational flexibility
- Increased competition from smaller manufacturers may impact market share and pricing power
- Execution risks related to supply chain diversification could affect operational stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,879 | 1,926 | 2,050 | 2,200 | 2,426 |
| Profit Before Tax (Cr.) | 319 | 311 | 277 | 295 | 334 |
| PBT Margin | 17.0% | 16.1% | 13.5% | 13.4% | 13.8% |
| Net Profit (Cr.) | 251 | 241 | 214 | 229 | 259 |
| Earnings Per Share | 194.9 | 187.1 | 166.2 | 177.6 | 200.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 6,800 | 04-Sep-2026 |
| IDBI Capital | ► Hold | 6,559 | 12-Aug-2026 |
| Motilal Oswal | ▲ Buy | 7,384 | 10-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 7,221 | 10-Aug-2026 |
| Moneycontrol | ► Equalweight | nan | 13-May-2026 |
| BOB Capital Markets | ▲ Buy | 6,700 | 11-May-2026 |
Company Overview
Show Company Profile
Cera Sanitaryware Limited manufactures, sells, and trades in building material products in India. The company offers sanitaryware, including toilets, wash basins, cisterns, seat covers, and fittings; faucets, showers, health faucets, allied products, and bath accessories; urinals; special needs bathroom products, shower chairs, and grab bars and handrails; green bathroom products; floor and wall tiles; shower partitions; kitchen sinks; bathtubs; and vanity cabinets and mirrors under the Senator, CERA Luxe, CERA, and Polipluz brands. It also exports its products. The company serves individual homeowners, small-scale buyers, construction companies, real estate developers, government bodies, and large entities through dealer and sub-dealer networks and direct engagement channels. The company was formerly known as Madhusudan Oils & Fats Ltd and changed its name to Cera Sanitaryware Limited in January 2003. Cera Sanitaryware Limited was founded in 1980 and is headquartered in Ahmedabad, India.