Cear management believes it can achieve ~16–17% operating profit margin going ahead as demand improves and it can pass on the complete price hike (~6% taken in Sept'24) in faucetware (~3% done TD). Also, improved contribution from luxury segment should aid margins going ahead.
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ICICI Securities Report
Cera Sanitaryware Ltd.' near-term demand outlook remains tepid but with real estate market expected to remain healthy as many real estate projects from CY25 (which were launched in CY22 and earlier) are expected to get completed, demand for bathware segment is expected to be buoyant.
We believe Cera is poised to benefit from the uptick in housing market due to its wide distribution, strong brand, comprehensive product portfolio and healthy balance sheet.
Maintain estimates and Buy rating on the stock with an unchanged Dec'25E target price of Rs 7,902, set at 35 times Dec'26E PER.
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