Cera Sanitaryware Ltd. share price target

Cera Sanitaryware (CRS) reported subpar Q1FY20 standalone revenue of Rs 2.7bn, down 4.8% YoY, with the sanitaryware segment declining 12.7%.

We recently met Container Corp of India's (CCRI) management in Delhi. Key takeaways: (1) revenue target of Rs 250bn by FY25/FY26 (Rs 7bn in FY19), (2) IR's advance freight scheme likely to be EPS-accretive, (3) completion of Rewari-Palanpur stretch of WDFC now expected by end-FY20, (4) coastal shipping operations to be launched on the east coast, and (5) warehousing area...

Cera Sanitaryware (CRS) reported above-estimated revenue growth of 14.5% YoY in Q4FY19 driven by 30%/22% growth in the tiles/faucet segments. Operating margins expanded 132bps YoY to 15.4% primarily due to lower other/employee expenses 217bps/118bps YoY, resulting in EBITDA/PAT growth of 25%/24% YoY. Management has guided for 13-14% revenue growth and ~15% margins in FY20. We increase FY20-FY21 PAT estimates by 4-5%...

We met the management of Cera Sanitaryware (Cera). The company primarily has businesses in sanitaryware, faucets and tiles. It also caters to other product categories viz. wellness, water heaters, etc. With 54% contribution to the topline, sanitaryware is the largest revenue-generating business for the company, followed by faucets (23%) and tiles (20%). Cera follows an asset-light JV model across business segments, with inhouse manufacturing facilities for high-value sanitaryware & faucets products while low-value products are outsourced. The company has a network of ~14,000 dealers and retailers across India. Revenues grew at...

Key takeaways from our meeting with the management of Cera Sanitaryware (CRS): (1) blended revenue growth of 12-13% going ahead with sanitaryware growing at 10-12%, tiles at ~10%, and faucets at 15-17% led by wider distribution; (2) blended operating margins sustainable at ~15% backed by sanitaryware at ~20%, with tile/faucet margins guided at ~10%/12-14%. We prune PAT estimates on below-expected tile growth guidance and revise our Dec'19 target price to Rs 3,120 (from Rs 3,255)....

Key takeaways from our meeting with the management of Cera Sanitaryware (CRS): (1) blended revenue growth of 12-13% going ahead with sanitaryware growing at 10-12%, tiles at ~10%, and faucets at 15-17% led by wider distribution; (2) blended operating margins sustainable at ~15% backed by sanitaryware at ~20%, with tile/faucet margins guided at ~10%/12-14%. We prune PAT estimates on below-expected tile growth guidance and revise our...

Festive Season Demand Holds Key for Q3FY17E: Cera Sanitaryware delivered healthy Q2FY17 earnings compared to its Q2FY16 YoYbasis. The sales turnover has increased from Rs.1996Mn in Q2FY16 to Rs.2610Mn in Q2FY17 representing 30.8% YoY growth. The variable cost which includes powerand fuel cost gone down almost 46% in Q2FY17 versus Q2FY16, which led to a 10.0% savings in the operational expenses that led to the improvement of the EBITDA by 49.5% on YoY basis in Q2FY17.

Capacity expansion in faucetware to drive revenue growth; and sanitarywarebusiness to showcase steady performance: In the last four years, Cera hasgrown at a CAGR of ~ 36%, higher than the industry growth of ~ 15% and in the next two years it is expected to grow at a CAGR 28%. Over the last couple of years, the company has gained its market share in the sanitaryware, and is the third largest player with a market share of ~ 23%.

Cera Sanitary ware Ltd (CSL), incorporated in 1980 by Mr Vikram Somany is the third largest sanitary company in organized sector with market share of 22%. Company is mainly engaged into manufacturing sanitary ware and faucet ware...