Cera Sanitaryware Q3 Results Review - Disappointing Results, Challenges Persist: IDBI Capital

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..IDBI Capital Report.Cera Sanitaryware Ltd.’s Q3 FY24 result was below our estimates on key parameters. Subdued demand and challenges in key markets weighed on net sales, while incremental advertising cost dented margins.With strategic objectives focused on expanding market share and enhancing the business-to-consumer segment, the company refrained from implementing price hikes since May, 2022 with price adjustments for sanitaryware increase of 2% and no price hikes in faucetware division.Sanitaryware and faucetware divisions, which contributed 52% and 36% to Q3 FY24 revenue, witnessed a decrease of 8% and increase of 5% respectively. Given subdued demand and cost pressure, we expect earnings to be muted in near term.We introduce FY26E and maintain Hold with a revised target price of Rs 8,003 (earlier Rs 8,333), assigning 37 times price earnings ratio on FY26E..Click on the attachment to read the full report:.Eicher Motors Q3 Review: The Ride Ahead Is Bumpier For Royal Enfield.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 Q3 Results Review - Disappointing Results, Challenges Persist: IDBI Capital

Near term outlook bleak, Hold with a target price of Rs 8,003

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