Cera Sanitaryware Ltd. share price target

We recently interacted with the management of Cera Sanitaryware (CRS). Following are the key takeaways: 1) Demand scenario remains healthy for core categories of sanitaryware and faucetware with both being driven by residential housing and home improvement markets primarily from tier 2 and below cities.

Our interaction with dealers and industry participants indicates that demand trends for Cera Sanitaryware’s (CRS) core products (faucetware, sanitaryware) remain healthy in Q4FY23-TD. Demand continues to be driven by traction in the residential housing and home improvement markets.

Cera Sanitaryware (CRS) reported in-line standalone revenue growth of 17.8% YoY in Q3FY23 with sanitaryware / faucetware revenues growing 19% / 12% YoY, while tile revenues grew 34% YoY on a low base.

Cera Sanitaryware has delivered a robust quarter reporting a Revenue growth of 18% YoY and PAT higher by 33% on YoY basis driven by a healthy demand environment which was aided by sustained interest from customers to improve and upgrade their homes.

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.