Cera Sanitaryware Ltd. share price target

Consolidated Q4 revenue up 7% YoY ex-one-offs of Anjani Tiles divestment and Ind AS-105 application; amounted to Rs 525mn

We reiterate BUY on Cera Sanitaryware (CRS) post our recent interaction with its management and continue to believe the company will be a significant beneficiary of the pick-up in demand from housing segment seen post pandemic. CRS continues to focus on its two major product categories, viz. sanitaryware and faucetware, and has indicated expansion plans in both these segments to be finalised over the next 1-2 quarters.

Q3 consolidated revenue grew 28% YoY with the sanitaryware/faucet segments increasing 51%/60%

Q1 consolidated revenue grew 56% YoY due to a low base effect with the sanitaryware/faucet segments increasing 54%/66%

CRS reported Q4FY21 consolidated revenue growth of 47% YoY off a tepid base, with the sanitaryware/faucet segments increasing 47%/62%

Cera Sanitaryware (CRS) reported a 3% YoY decline in consolidated revenue for Q3FY21, with the sanitaryware segment down 5% due to production issues.

Automobiles: Channel check takeaways Dismal demand climate for MHCVs. CRS: Demand trends improving. IT Services: Stellar outsourcing show- a positive readthrough for Indian IT

Key takeaways from our interaction with the management of Cera Sanitaryware (CRS).

Cera Sanitaryware's (CRS) Q1FY21 consolidated revenue declined 46% YoY, bettering our estimate of a 62% drop.

Building material companies under our coverage are likely to post a dull Q4FY20 as tough market conditions have been further accentuated by the lockdown in end-March, thus taking a toll on volumes.