Cera Sanitaryware - Downgrades To 'Add' Post Sharp Stock Price Rally: ICICI Securities

ICICI Securities Report

We downgrade Cera Sanitaryware Ltd. to 'ADD' from 'Buy' post the sharp ~13% stock price rally over the past one month, whereby, its valuation appears to be full (35.2 times PER FY26E) and thus offers limited upside.

We continue to believe Cera would be a major beneficiary of the ongoing traction in the real estate market due to its strong brand, widespread distribution and robust net-debt balance sheet. We estimate Cera to witness Ebitda/adjusted profit after tax compound annual growth rate of 13.1%/19.2% over FY24-27E driven primarily by the faucetware segment with superior return ratios (RoE of 19.7% in FY26E).

We maintain our earnings estimate with an unchanged Sept’25E target price of Rs 8,416, set at 35x PER 1-year forward (in line with historical 10-year average, 1-year forward P/E).

Click on the attachment to read the full report:

DISCLAIMER

This 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.