Add Cera Sanitaryware, target price Rs 6746: ICICI Securities

ICICI Securities has add call on Cera Sanitaryware with a target price of Rs 6746. The current market price of Cera Sanitaryware is Rs 6287.15.

Cera Sanitaryware Ltd., incorporated in the year 1998, is a Mid Cap company (having a market cap of Rs 8167.04 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 31-12-2022, the company reported a Consolidated Total Income of Rs 471.06 Crore, up 10.45 % from last quarter Total Income of Rs 426.51 Crore and up 14.95 % from last year same quarter Total Income of Rs 409.79 Crore. Company reported net profit after tax of Rs 56.89 Crore in latest quarter.


Investment Rationale
The brokerage continues to like CRS due to its net cash balance sheet, wide distribution, strong brand and comprehensive product portfolio which would position it well to deliver high growth led by the ongoing uptick in housing market. Maintain estimates and ADD rating on the stock with an unchanged Mar’24 target price of Rs6,746. Key risks to our call: 1) Slowdown in demand from housing market, 2) continuous higher input prices, which may dent demand / profitability.

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 31-Dec-2022, while FIIs owned 17.52 per cent, DIIs 9.36 per cent.