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
Real-estate industry has witnessed strong launches and new constructions which should ideally lead to healthy demand for Cera Sanitaryware Ltd.'s products viz sanitaryware and faucets. Hence, we reckon Cera's performance to improve from H2 FY25E.
Incrementally, we believe that growth should accelerate over FY26E-FY27E owing to strong tailwinds of real-estate industry.
We have maintained our revenue/Ebitda/PAT growth estimate of 9%/10%/8% respectively over FY24- FY26E. With healthy topline growth and focus on premiumization, we believe Cera will deliver operating margins of 16%/16.5% for FY25E/FY26E, respectively.
Notably, Cera has announced a buy-back of Rs1.3 billion (cash + current investment as on March'24 was Rs 8.14 billion) at a price of Rs 12,000/share.
At current market price, Cera trades at P/E(x) of 37.5x on FY26E EPS of Rs 220 (on FY27E EPS of Rs 244, stock trades at P/E(x) of 33.8 times).
We continue to value the company at P/E(x) of 40 times on FY26E EPS, maintaining our target price of Rs 8,809. Given the recent correction in stock prices, we upgrade our rating from Reduce to Neutral.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
