Cera Q2 Review - Project Biz Shows Early Signs Of Recovery, Retail To Pick-Up; Upgrade To Buy: Yes 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..Yes Securities Report.Though Cera Sanitaryware Ltd.’s revenue in Q2 FY25 was above our estimates, H1 FY25’s topline remained flattish on YoY basis. Hence, we have largely maintained our revenue growth estimate for FY25 but owing to contraction in operating margins during H1 FY25, we have revised our Ebitda margins downwards from 16%/16.5% to 14.8%/15.5% in FY25E/FY26E respectively. However, owing to lower tax rates in H1 FY25, our EPS estimate has been downgraded by a mere 1%/3% for FY25E/FY26E respectively. Going ahead, we reckon demand for Sanitaryware and faucets to improve from hereon with expected pick-up in demand from retail segment along with higher demand from project business. Hence, we expect revenue/Ebitda/PAT growth of 11%/9%/8% respectively over FY24-FY27E. Notably, company revenue/Ebitda/PAT grew by 14%/15%/26% over FY22-FY24.At current market price, the stock trades at P/E(x) of 32x/29x on FY26E/FY27E EPS of Rs 214/Rs235 respectively. We have re-valued the company at P/E(x) of 35x on FY27E EPS, owing to slower growth versus past two-years, arriving at a target price of Rs 8,224. Hence, we upgrade the stock to Buy..Click on the attachment to read the full report:.Eicher Motors Q2 Results Review - Focus On Volumes Over Margins Accelerate: Yes Securities.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 Q2 Review - Project Biz Shows Early Signs Of Recovery, Retail To Pick-Up; Upgrade To Buy: Yes Securities

The brokerage has re-valued the company at P/E(x) of 35x on FY27E EPS, owing to slower growth versus past two-years, arriving at a target price of Rs 8,224.

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Cera Q2 Review - Project Biz Shows Early Signs Of Recovery, Retail To Pick-Up; Upgrade To Buy: Yes Securities

The brokerage has re-valued the company at P/E(x) of 35x on FY27E EPS, owing to slower growth versus past two-years, arriving at a target price of Rs 8,224.

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