Buy Cera Sanitaryware, target price Rs 6725: Centrum Broking

Centrum Broking has buy call on Cera Sanitaryware with a target price of Rs 6725. The current market price of Cera Sanitaryware is Rs 5553.05. 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 7209.68 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 values the stock at 35x FY24E, in-line to its last three year’s PE multiple to arrive at a target price of Rs6,725

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.