Consumer Durables
Cera Sanitaryware Limited provides sanitary ware and faucet ware products in India. The company offers sanitaryware comprising EWC's, wash basins, urinals, cisterns, squatting pans, and special need accessories. It also offers faucets, showers, auxiliaries, health faucets, and bath accessories. In addition, the company provides standing bath tub, air and water massage bath tub, drop-in bath tub, shower rooms and bath tubs, shower partitions and panels, mirrors, and bath tub accessories. Further, it offers glazed, polished, ceramic wall and floor tiles; elevation and parking tiles, and slabs. The company exports its products. Cera Sanitaryware Limited was founded in 1980 and is based in Ahmedabad, India.
Profitability: Recent profitability of 12% is a good sign.
Balance Sheet: Strong Balance Sheet.
Size: Market Cap wise it is among the top 20% companies of india.
Insider Trading: There's significant insider buying recently.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Momentum: Stock is suffering a negative price momentum. Stock is down -3.9% in last 30 days.
Smart Money: Smart money looks to be reducing their stake in the stock.
Technicals: SharesGuru indicator is Bearish.
Comprehensive comparison against sector averages
CERA metrics compared to Consumer
Category | CERA | Consumer |
---|---|---|
PE | 29.61 | 63.86 |
PS | 3.61 | 2.00 |
Growth | 1.8 % | 8.1 % |
CERA vs Consumer (2021 - 2025)
Summary of Cera Sanitaryware's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management's outlook remains cautiously optimistic despite persistent demand challenges. They anticipate gradual recovery driven by government measures (tax cuts, SWAMIH Fund allocation), improving real estate activity, and urbanization trends. While FY25 is expected to close with lower single-digit growth, long-term confidence stems from a strong brand, operational discipline, and strategic focus on premium segments. Key points:
Financial Performance: Q3 revenue grew 2.9% YoY to Rs.449 Cr, but EBITDA declined 5.2% to Rs.71 Cr due to discounts and higher costs. Sanitaryware (50% of revenue) saw flat growth, while Faucetware (+6%) and Wellness (+24%) performed better.
Market Conditions: Retail (B2C) demand remains subdued, but B2B (35% of revenue) is gaining traction. Tier-3 cities led sales (44%).
Strategic Initiatives:
Government Measures: Union Budget 2025's tax cuts and Rs.15,000 Cr SWAMIH funding to boost real estate and consumer spending.
Margins & Costs: Margin pressure from discounts (partially offset by lower ad spends) but expected to recover to 16"“17% as demand improves. Gas costs remain controlled (1.56% of revenue).
CAPEX & Working Capital: Rs.25 Cr CAPEX (Rs.15 Cr spent in 9MFY25) for manufacturing/retail upgrades. Working capital days rose to 76 due to inventory (85 days) and receivables (33 days).
Digital & Retail Strategy: Social media campaigns, influencer collaborations, and retailer loyalty programs (23,000+ retailers enrolled) driving engagement.
Management remains confident in leveraging brand strength, R&D, and a balanced B2B-B2C mix to capitalize on long-term growth, targeting Rs.2,900 Cr revenue by FY27.
Last updated: Feb 25
Question 1 (Archana Gude - IDBI Capital):
"Firstly, on the margin front... achieving a margin of 16% to 17% in the near term may be challenging. Your comments on this would be helpful."
Answer: Margins are stable year-on-year (13.2% EBITDA), with challenges due to demand-driven discounts. Management expects margins to rebound to 16-17% in 1-2 quarters as demand improves and discounts taper.
Question 2 (Archana Gude - IDBI Capital):
"The price hike... was it a wrong timing by our end?"
Answer: The Q2 FY25 Faucetware price hike (6%) addressed rising brass costs. Pre-hike dealer stocking inflated Q2 sales, leading to Q3 liquidation. Despite this, Faucetware grew 6% YoY, showing stable demand.
Question 3 (Mithun Aswath - Kivah Advisors):
"Are you observing... signs of demand picking up on the consumer side?"
Answer: Retail demand remains sluggish, but project orders are rising. Budget measures (tax cuts, SWAMIH funding) and rate cuts may boost demand, though recovery may take 1-2 quarters. Rural demand is not outperforming urban.
Question 4 (Praveen Sahay - PL Capital):
"Gross margin has improved... operational expenses or discounts?"
Answer: Margin contraction stems from increased discounts (since Q3 FY24) and inflationary operating costs. Discounts have now bottomed, with no further increases expected.
Question 5 (Ritesh Shah - Investec):
"Captive and outsourcing mix for Sanitaryware and Faucetware?"
Answer: Q3 FY25: Sanitaryware (58% outsourced), Faucetware (48% outsourced). 9M FY25: Sanitaryware (57% outsourced), Faucetware (48% outsourced). Flexibility in outsourcing ensures capacity scalability.
Question 6 (Resha Mehta - GreenEdge Wealth):
"Revenue salience of Luxe and Senator brands?"
Answer: Both brands are nascent but aim to contribute 10% (~Rs.290 crore) of revenue by FY27. Margins will be higher than core products. Senator launches 20-25 stores by April 2025.
Question 7 (Udit Gajiwal - YES Securities):
"Impact of new competitors on margins?"
Answer: New entrants (e.g., paint/tile firms) struggle to scale profitably in bathware. Competition focus remains on incumbents. Price hikes (6% Faucetware, 1% Sanitaryware) align with peers, but discounts offset gains.
Question 8 (Samyak Jain - Marcellus):
"Inventory strategy if demand stays weak?"
Answer: Faucetware production is adjustable (low fixed costs), while Sanitaryware retains skilled labor by balancing in-house/outsourced mixes. Inventory will adjust if weak demand persists beyond 6-9 months.
Question 9 (Omkar Ghongade - Shree Investments):
"Retail expansion strategy?"
Answer: Annual target: 300"“350 display centers (current: 1,682). Focus on cost optimization (logistics, labor, insurance) and premium segments (Senator/Luxe). Weak markets (East, Tamil Nadu) are being strengthened.
Question 10 (Akshay Chheda - Canara Robeco):
"Why retail softness despite B2B growth?"
Answer: New construction slowdown in Tier 2/3 cities impacts retail. Budget measures may revive activity, but demand recovery is gradual. Competition from Morbi/MNCs is minimal.
Understand Cera Sanitaryware ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
VIKRAM INVESTMENT COMPANY PRIVATE LIMITED | 22.27% |
SMITI SOMANY | 10.3% |
NALANDA INDIA EQUITY FUND LIMITED | 9.57% |
VIKRAM SOMANY | 7.26% |
REKHA COMMERCIAL PRIVATE LIMITED | 4.09% |
TRISURE PROMOTIONS & TRADINGS PRIVATE LIMITED | 3.72% |
DEEPSHIKHA KHAITAN | 2.6% |
SUVINAY TRADING & INVESTMENT CO. LTD. | 2.48% |
SMALLCAP WORLD FUND, INC | 2.22% |
SAJAN KUMAR PASARI | 1.82% |
CANARA ROBECO MUTUAL FUND A/C CANARA ROBECO SMALL CAP FUND & CONSERVATIVE HYBRID FUND | 1.59% |
POOJA JAIN SOMANY | 1.55% |
HSBC SMALL CAP FUND | 1.54% |
HDFC LIFE INSURANCE COMPANY LIMITED | 1.18% |
MADHUSUDAN INDUSTRIES LIMITED | 0.14% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
---|---|
Market Cap | 6.99 kCr |
Price/Earnings (Trailing) | 29.34 |
Price/Sales (Trailing) | 3.57 |
EV/EBITDA | 20.09 |
Price/Free Cashflow | 50.74 |
MarketCap/EBT | 23.23 |
Fundamentals | |
---|---|
Revenue (TTM) | 1.96 kCr |
Rev. Growth (Yr) | 2.01% |
Rev. Growth (Qtr) | -9.07% |
Earnings (TTM) | 238.14 Cr |
Earnings Growth (Yr) | -10.01% |
Earnings Growth (Qtr) | -32.42% |
Profitability | |
---|---|
Operating Margin | 15.38% |
EBT Margin | 15.38% |
Return on Equity | 19.26% |
Return on Assets | 13.81% |
Free Cashflow Yield | 1.97% |
Investor Care | |
---|---|
Dividend Yield | 0.87% |
Dividend/Share (TTM) | 60 |
Shares Dilution (1Y) | 0.83% |
Diluted EPS (TTM) | 181.69 |
Financial Health | |
---|---|
Current Ratio | 3.53 |
Debt/Equity | 0.01 |
Debt/Cashflow | 11.54 |
Detailed comparison of Cera Sanitaryware against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
KAJARIACER | Kajaria CeramicsCeramics | 12.75 kCr | 4.75 kCr | -6.79% | -33.59% | 35.31 | 2.69 | +3.58% | -17.71% |
HSIL | Hemant Surgical IndustriesMedical Equipment & Supplies | 6.17 kCr | - | +708.08% | -2.09% | - | - | - | - |
SOMANYCERA | Somany CeramicsCeramics | 1.76 kCr | 2.63 kCr | +2.48% | -33.01% | 24.11 | 0.67 | +3.48% | -18.63% |
ORIENTBELL | Orient BellCeramics | 368.51 Cr | 681.92 Cr | +10.25% | -34.73% | 73.84 | 0.54 | +1.84% | +111.60% |