Cera Sanitaryware - Soft H1, But Management Confident Of Better Days Ahead; Retaining A Buy: Anand Rathi

The brokerage expects 10%/13%/10% revenue /Ebitda /PAT CAGRs during FY24-27.

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Anand Rathi Report

Cera Sanitaryware Ltd.’s H1 remained soft as revenue was flat at Rs 8.9 billion. Ebitda declined 11.4% YoY, while PAT inched up 1.7% YoY to Rs 1.2 billion. Demand was subdued in H1, led by heatwaves in some regions, slowdown due to general elections in Q1 and prolonged rains in Q2.

Input cost pressure hurt the gross margin, which fell 21 bps YoY to 53.6%. Operating de-leverage hurt the Ebitda margin, which dipped 190 bps YoY to 14.6%.

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Anand Rathi Cera Company Update.pdf
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Also Read: Godrej Consumer Products - At An Attractive Entry Point, 'Buy': Systematix

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