Cera Sanitaryware Ltd. share price target

CRS targets 1820% revenue growth in FY27 backed by price hikes and demand recovery Recent price hikes of ~12% in sanitaryware and ~16% in faucetware have been fully absorbed by the market We attended CERA Sanitaryware's (CRS) management meet, where the management highlighted sustained recovery in retail demand since Q3FY26 and expects the momentum to continue into Q1FY27 alongside healthy project demand. The company expects to benefit from ongoing disruptions in the Morbi cluster due to labor and...

Cera Sanitaryware Ltd.'s (Cera) Q4FY26 performance was above our estimates on all fronts. Cera Sanitaryware delivered a resilient fourth quarter with total revenue reaching Rs6.44 Bn, supported by steady retail demand and strong project execution. However, margins were pressured by a sharp rise in brass prices and higher trade discounts used to maintain competitiveness. To counter these headwinds, the company implemented strategic price hikes across its faucetware and sanitaryware divisions. The Middle East crisis further complicated operations, causing gas supply restrictions at production plants and...

We increase our top-line estimates to factor in improved retail demand and push towards the organised sector. We forecast a Revenue/EBITDA/PAT CAGR of 12%/9%/7% and assign a 29.5x FY28E EPS to arrive at a TP of Rs 7,000/share, implying an upside of 21% from the CMP. We maintain our BUY rating.

Revenue beat, miss on margins, revenue growth of 11% driven by 18% faucetware growth while sanityaware grew 6% YoY

Q4FY26 financial performance: Revenues grew by 11.4% YoY at INR 6.4bn (PLe: INR 50.4%). EBITDA declined by 7.3% YoY to INR 979mn (PLe: INR 781mn) and EBITDA margin contracted by ~300bps YoY to 15.2%. (PLe: 12.5%). PBT decline by 15.3% YoY to...

Cera Sanitaryware (CRS) continued to witness healthy demand momentum in 4QFY26 after clocking a healthy 11% revenue growth in 3Q, following a <5% growth since 2HFY24.

Revenue beats estimates by ~7%, while cost inflation led to EBITDA and APAT miss by ~18% and ~25% in Q3FY26

We maintain our BUY rating on the stock.

Cera Sanitaryware Ltd.'s (Cera) Q3FY26 performance was below our estimates on margins front. EBITDA was lower impacted by higher trade discounts driven by increased project participation, elevated brass input costs, higher publicity spends, and pre-operative expenses for new brands. The Management expects EBITDA margins to recover to 1314% in Q4 FY26 as one-off costs normalize, with a medium-term target of 1517% margins achievable by H2 FY27, assuming stable input costs. Recently announced price hikes of ~11% in faucetware and ~4% in sanitaryware are expected to fully offset current input cost inflation,...

Cera Sanitaryware (CRS) missed our earnings estimates in 3QFY26 despite clocking a healthy uptick in revenue (up 11% YoY). Revenue growth was driven by 18.1% YoY growth in faucetware (40% revenue mix) and 6.4% YoY growth in sanitaryware (48% revenue mix).

Cera Sanitaryware reported a flat revenue of ~Rs4.9bn in Q2 FY26, largely due to subdued retail environment and poor performance of faucetware.

We maintain our BUY recommendation on the stock.

Misses estimates for Q2FY26 due to lower-than-expected revenue (-0.9% YoY vs +6.0% estimated) on weak retail demand

Cera Sanitaryware (CRS) reported flat revenue YoY in Q2FY26 with faucetware segment decelerating 3.5% YoY (6- year CAGR of ~16%) on a high base, whereas sanitaryware segment growing 1.4% YoY.

Amidst the subdued demand environment, Cera Sanitaryware reported a stable performance. Revenue grew 5.4% y/y to Rs4.2bn, largely supported by faucets as sanitaryware revenue was flat.

We maintain our BUY recommendation on the stock.

increase in employee cost and B2B contribution. CRS aims to outperform the industry by 6-7%, with EBITDA margin of 15-16% by the end of FY26. The company continues to hold off its sanitaryware expansion plans until the demand environment improves. We estimate revenue/ EBITDA/PAT CAGR of 11.4%/12.2%/10.7% over FY25-27E. We downward revise FY26/FY27E earnings estimate by 1.9%/2.8% and reduce TP to Rs7,178 (Rs7,389 earlier), based on 30x FY27E earnings. Maintain Accumulate' rating....

Cera Sanitaryware Ltd.'s (Cera) Q1FY26 performance was in-line with our estimate on net sales front, while margins disappointed. The industry is facing subdued market condition from the last six to seven quarters. Consequently, there has been no price increase in the sector for some time, especially in Sanitary ware. However, the management guided that the long-term outlook is expected to stay strong, supported by continued formalization of the sector, rising aspiration of the consumers, and supporting policy initiatives such as urban redevelopment, housing schemes, and sanitation infrastructure. The...

Margin miss in Q1 due to the inability to pass on cost inflation pressure in a weak demand environment

We initiate coverage of Cera Sanitaryware Ltd. with a BUY recommendation and a target price of Rs 8,500/share, implying a potential upside of 31% from the CMP.