Cera Sanitaryware - Demand Environment Steady: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Our optimism on Cera Sanitaryware Ltd. is driven by the sustained healthy demand environment aided by pick-up in the residential housing market as well as in home improvement market. Our interaction with dealers and industry participants indicates continued demand tailwinds even in Q3 FY23E-to-date in the segments of sanitaryware and faucetware (except in national capital region region, where construction has been banned since November 2022 to combat pollution). Cera’s operating margin for FY23E should be ~16% as there are no additional cost pressures, though high advertising and promotion spend on the new brand campaign launched in H2 FY23, if accounted for entirely in H2 itself, may result in lower margins. Management had earlier guided for doubling of revenue over next ~3.5 years with margin improvement of at least 50 basis points-75 bps YoY in FY23. We expect Cera to witness revenue/profit after tax compound annual growth rates of 16.6%/24.4% respectively, over FY22-FY25E led by faucetware and sanitaryware segments with strong return ratios..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cera Sanitaryware - Demand Environment Steady: ICICI Securities

Our interaction with dealers and industry participants indicates continued demand tailwinds even in Q3 in sanitaryware, faucetware

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