Cera Sanitaryware
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Cera Sanitaryware's recent performance reflects a volume-driven growth strategy, with management maintaining an optimistic revenue growth guidance of 18-20% for FY27, despite facing temporary margin pressures from raw material inflation and one-off costs. The company's strategic focus on transitioning project contracts to higher price points, expanding its premium product lines, and enhancing internal manufacturing capabilities positions it well to navigate supply chain challenges. Vista's financial outlook aligns with these developments, projecting stable revenue growth and margins, supported by a conservatively financed balance sheet. The building materials industry is currently experiencing favorable conditions, with improving pricing power and a stable demand environment, which further bolsters Cera's growth prospects. Over the next 12-24 months, key opportunities include the successful execution of brand expansion initiatives and the operationalization of enhanced production capacity. However, watchpoints include potential volatility in input costs and execution risks related to supply chain diversification. Overall, Cera Sanitaryware is well-positioned to capitalize on structural tailwinds in the building materials sector, with a target price reflecting an expected upside of approximately 10.7%
Why We Like This Stock
- Management's guidance of 18-20% revenue growth for FY27 indicates strong volume-driven demand
- Strategic investments in brand expansion and internal manufacturing are expected to enhance market share and mitigate supply chain risks
- The building materials industry is experiencing improving pricing power, supporting Cera's margin recovery
Things To Watch Out For
- Temporary margin pressures from raw material inflation and one-off costs may impact profitability in the short term
- Execution risks related to supply chain diversification away from the Morbi cluster could affect operational efficiency
- Volatility in input costs, particularly for brass and energy, remains a significant concern for margin stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,879 | 1,926 | 2,050 | 2,208 | 2,495 |
| Profit Before Tax (Cr.) | 319 | 311 | 277 | 279 | 334 |
| PBT Margin | 17.0% | 16.1% | 1351.2% | 12.6% | 13.4% |
| Net Profit (Cr.) | 251 | 241 | 214 | 217 | 260 |
| Earnings Per Share | 194.9 | 187.1 | 166.2 | 168.0 | 201.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BOB Capital Markets | ▲ Buy | 6,700 | 11-May-2026 |
| IDBI Capital | ► Hold | 6,559 | 12-Aug-2026 |
| Moneycontrol | ► Equalweight | nan | 13-May-2026 |
| Motilal Oswal | ▲ Buy | 7,384 | 10-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 7,221 | 10-Aug-2026 |
Company Overview
Show Company Profile
Cera Sanitaryware Limited manufactures, sells, and trades in building material products in India. The company offers sanitaryware comprising toilets, wash basins, cistern, seat covers, and fittings; faucets, showers, health faucets, and accessories; floor and wall tiles; shower partitions; kitchen sinks; and vanity cabinets and mirrors under the Senator, CERA Luxe, and CERA brands. It also exports its products. Cera Sanitaryware Limited was founded in 1980 and is headquartered in Ahmedabad, India.