Cera Sanitaryware Ltd. share price target

We reiterate our BUY rating on Cera Sanitaryware (CRS) driven by the sustained healthy demand environment aided by pick-up in the residential housing market as well as in home improvement market.

Cera Sanitaryware (CRS) has reported better-than-expected consolidated Q2FY23 revenue growth of 5.6% YoY (3-year CAGR: 8.1%) with sanitaryware / faucetware revenue up 10.4% / 6.6% YoY (3-year CAGR: 12.4% / 21.1%) on a high base of Q2FY22.

Our interaction with dealers and industry participants indicates demand trends for
sanitaryware and faucetware continued to remain steady in Q2FY23 despite a strong
H1CY22.

Cera Sanitaryware Ltd. (Cera) with a track record of 2 decades, strong brand, and large
retail network has a sizable market share of 17% in the 80% organised Sanitaryware (SW) & 7% in the 65% organised Faucetsware (FW) market.

Cera Sanitaryware Ltd. (Cera) with a track record of 2 decades, strong brand, and large
retail network has a sizable market share of 17% in the 80% organised Sanitaryware (SW) & 7% in the 65% organised Faucetsware (FW) market.

Cera Sanitaryware (CRS) reported better than expected consolidated Q1FY23 revenue
surge of 78% YoY (3-year CAGR: 13.6%) with sanitaryware / faucetware revenues up
89% / 98% YoY (3-year CAGR: 15.5% / 26.7%) on a low base.

Consolidated Q1 revenue grew 74% YoY backed by high demand from home renovation projects, real estate launches and price hikes

We re-iterate our BUY rating on Cera Sanitaryware (CRS) led by continued healthy demand environment aided by pick-up in the residential housing market and also from the home improvement market. Our interaction with dealers and management indicates continued demand tailwind even in Q1 in the core segments of sanitaryware and faucetware.