Cera Sanitaryware - Near-Term Demand Tepidness May Provide A Good Entry Point: ICICI Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Cera Sanitaryware Ltd. is one of the major organised sanitaryware players in India. Over the years, the company has expanded its product portfolio from sanitaryware to tiles, faucets and wellness goods, becoming a one-stop bathroom solution provider. It has significant presence in tier-II and tier-III markets with strong brand name and wide distribution. Cera is likely to witness Ebitda/adjusted profit after tax compound annual growth rate of 15.7%/22.3%, respectively, during FY23-FY26E with continued strong balance sheet and healthy return ratios (return on equity of 20.7% in FY26E). We maintain 'Hold' rating on the stock with an unchanged December 2024E target price of Rs 8,262, set at 32 times Dec-25E price/earning, in line with the historical five-year average, one-year forward price/earning..Key downside risksAny unexpected slowdown in housing market would adversely affect business. Higher raw material prices may adversely affect profitability and demand. Key upside risksSharp decline in raw material prices could result in better-than-expected profitability. Better-than-expected pickup in demand scenario..Click on the attachment to read the full report:.PVR-Inox - ‘Animal’ Spirit To Rescue A Cricket-Impacted Quarter: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cera Sanitaryware - Near-Term Demand Tepidness May Provide A Good Entry Point: ICICI Securities

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