Buy Cera Sanitaryware, target price Rs 5545: ICICI Securities

ICICI Securities has buy call on Cera Sanitaryware with a target price of Rs 5545. The current market price of Cera Sanitaryware Ltd. is Rs 4460. 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 5781.11 Crore) operating in Building Materials sector.

Cera Sanitaryware Ltd. key Products/Revenue Segments include Building Products, Other Operating Revenue, Sale of services and Export Incentives for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 409.79 Crore, down -.34 % from last quarter Total Income of Rs 411.18 Crore and up 26.02 % from last year same quarter Total Income of Rs 325.18 Crore. Company reported net profit after tax of Rs 44.75 Crore in latest quarter.


Investment Rationale
CRS has a strong net-cash balance sheet with healthy growth prospects due to uptick in housing market. The brokerage continues to like the company for its comprehensive product portfolio, wide distribution reach and strong brand presence. It maintains BUY with an unchanged Mar’23 target price of Rs5,545. Key risks to our call: 1) slowdown in demand from housing sector; 2) continued higher input prices, which may dent demand / profitability.

Promoter/FII Holdings
Promoters held 54.5 per cent stake in the company as of June 30, 2020, while FIIs held 15.2 per cent, DIIs 10.1 per cent and public and others 20.2 per cent.