Add Cera Sanitaryware, target price Rs 6143: ICICI Securities

ICICI Securities has add call on Cera Sanitaryware with a target price of Rs 6143. The current market price of Cera Sanitaryware is Rs 5387.35. Time period given by analyst is one year when Cera Sanitaryware Ltd. price can reach defined target.

Cera Sanitaryware Ltd., incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 7005.48 Crore) operating in Building Materials sector.

Cera Sanitaryware Ltd. key Products/Revenue Segments include Building Products, Other Operating Revenue, Export Incentives and Sale of services for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 396.58 Crore, down -4.15 % from last quarter Total Income of Rs 413.75 Crore and up 68.93 % from last year same quarter Total Income of Rs 234.75 Crore. Company reported net profit after tax of Rs 39.87 Crore in latest quarter.

Investment Rationale
The brokerage downgrades the stock from Buy to ADD due to ~29% run-up in stock price over the past 3 months with a rolled over Sept’23 target price of Rs6,143 (earlier: Rs5,657) set at an unchanged 32x PER (in line with 1-yr forward, five-year average PER).

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 30-Jun-2022, while FIIs owned 18.34 per cent, DIIs 10.6 per cent.