Cera Q1 Review - Subpar Performance; Downgrade To Reduce Post Sharp Rally In Stock Price: 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.In Q1 FY25, Cera Sanitaryware Ltd. consolidated revenue fell 6.5% YoY with sanitaryware/faucetware segments’ revenue dipping ~9%/5% YoY, while that of tiles plunging 20% YoY. Operating profit margin shed 193 basis points YoY/281 bps QoQ due to negative operating leverage, resulting in Ebidta/adjusted profit after tax ebbing 17.5%/16.4% YoY.Management flagged tepid demand in Q1 (exacerbated by India’s general elections/adverse weather); but, it expects demand to reinvigorate in H2 FY25 driven by a healthy real estate market. Cera maintains its revenue guidance of ~Rs 29 billion by March 27, but now expects growth to be back-ended with high single-digit FY25 revenue growth.While we prune our FY25E/FY26E profit after tax by 4%/3%, we downgrade Cera to 'Reduce' (from Add), taking cognizance of the stock price’s six months ~31% rally. Rolling over to June 25E we arrive at a target price of Rs 8,637 (earlier Rs 7,827) set at 35 times price to earning June 26E (earlier 32 times)..Click on the attachment to read the full report:.Piramal Enterprises Shares Extend Loss For Second Session Despite Q1 Profit.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 Q1 Review - Subpar Performance; Downgrade To Reduce Post Sharp Rally In Stock Price: ICICI Securities

Company's near-term demand environment remains tepid and growth is expected to revive from H2, says the brokerage.

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Cera Q1 Review - Subpar Performance; Downgrade To Reduce Post Sharp Rally In Stock Price: ICICI Securities

Company's near-term demand environment remains tepid and growth is expected to revive from H2, says the brokerage.

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