Buy Cera Sanitaryware, target price Rs 5592: ICICI Securities

ICICI Securities has buy call on Cera Sanitaryware with a target price of Rs 5592. The current market price of Cera Sanitaryware is Rs 4031.95. 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 5274.47 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 31-03-2022, the company reported a Consolidated Total Income of Rs 413.75 Crore, up .97 % from last quarter Total Income of Rs 409.79 Crore and down -6.54 % from last year same quarter Total Income of Rs 442.72 Crore. Company reported net profit after tax of Rs 52.65 Crore in latest quarter.

Investment Rationale
CRS has a strong net-cash balance sheet with healthy growth prospects led by uptick in housing market and increased demand from home improvement 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 Rs5,592. Key risks to our call: 1) Slowdown in demand from housing, 2) continued higher input prices, which may dent demand / profitability.

Promoter/FII Holdings
Promoters held 54.48 per cent stake in the company as of 31-Mar-2022, while FIIs owned 19.92 per cent, DIIs 9.98 per cent.