Cera Sanitaryware Ltd. share price target

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.

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%