Cera Q4 Review - Margin Surprises Positively; Near-Term Demand Environment Remains Tepid: 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. has reported Q4 FY24 consolidated revenue growth of 2.5% YoY (+25% QoQ; three-year compound annual growth rate of 7.8%) with sanitaryware revenue declining 2% YoY, faucetware growing 10% YoY, while tiles revenue declined 10% YoY. Operating profit margin increased 41 bps YoY (+330 bps QoQ) driven by lower advertising and promotion expenses and other cost optimisation measures (other expenses declining 357 bps YoY) resulting in Ebitda/adjusted profit after tax growth of 5.0%/12.6% YoY, respectively. Management stated demand is likely to revive post Q1 FY25 and has revised revenue guidance of ~Rs 29 billion to March 2027 (from Sep’25 earlier). It expects FY25 to be stronger driven by uptick in real estate demand and retail segment. We like Cera led by its significant presence in sanitaryware and faucetware segments, demand for which is set to rise led by an improving housing market. We broadly maintain our PAT estimates and upgrade the stock to Add from Hold with an unchanged Mar’25E target price of Rs 7,827, set at 32 times Mar’26E price/earnings..Click on the attachment to read the full report:.Kajaria Ceramics Q4 Results Review - Weak Performance On Key Parameters: IDBI Capital.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 Q4 Review - Margin Surprises Positively; Near-Term Demand Environment Remains Tepid: ICICI Securities

Operating margin improves on lower advertising and promotion and cost efficiencies

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Cera Q4 Review - Margin Surprises Positively; Near-Term Demand Environment Remains Tepid: ICICI Securities

Operating margin improves on lower advertising and promotion and cost efficiencies

Choose a plan

Follow Us

DOWNLOAD THE APP