Consumer Durables
Valuation | |
|---|---|
| Market Cap | 6.78 kCr |
| Price/Earnings (Trailing) | 27.62 |
| Price/Sales (Trailing) | 3.37 |
| EV/EBITDA | 18.94 |
| Price/Free Cashflow | 83.38 |
| MarketCap/EBT | 21.94 |
| Enterprise Value | 6.78 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 2.01 kCr |
| Rev. Growth (Yr) | 5.7% |
| Earnings (TTM) | 248.3 Cr |
| Earnings Growth (Yr) | -0.90% |
Profitability | |
|---|---|
| Operating Margin | 15% |
| EBT Margin | 15% |
| Return on Equity | 18.15% |
| Return on Assets | 13.33% |
| Free Cashflow Yield | 1.2% |
Growth & Returns | |
|---|---|
| Price Change 1W | -1.6% |
| Price Change 1M | -8.9% |
| Price Change 6M | -24.9% |
| Price Change 1Y | -31.6% |
| 3Y Cumulative Return | -0.60% |
| 5Y Cumulative Return | 11% |
| 7Y Cumulative Return | 12.2% |
| 10Y Cumulative Return | 10.5% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | 126.63 Cr |
| Cash Flow from Operations (TTM) | 122.02 Cr |
| Cash Flow from Financing (TTM) | -260.08 Cr |
| Cash & Equivalents | 9.57 Cr |
| Free Cash Flow (TTM) | 93.32 Cr |
| Free Cash Flow/Share (TTM) | 72.35 |
Balance Sheet | |
|---|---|
| Total Assets | 1.86 kCr |
| Total Liabilities | 494.65 Cr |
| Shareholder Equity | 1.37 kCr |
| Current Assets | 1.42 kCr |
| Current Liabilities | 371.17 Cr |
| Net PPE | 396.54 Cr |
| Inventory | 410.46 Cr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.01 |
| Debt/Equity | 0.01 |
| Interest Coverage | 38.85 |
| Interest/Cashflow Ops | 16.73 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 65 |
| Dividend Yield | 1.24% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | -0.80% |
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.
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Management provided an optimistic outlook during the Q1 FY26 earnings conference call, emphasizing both stability amid challenging market conditions and strategic growth initiatives.
Key points from the management's outlook include:
Stable Performance: Despite continued softness in consumer demand, particularly in the sanitaryware segment, the company reported a stable performance. The Faucetware segment saw a notable year-on-year growth of 13.4%.
Revenue and Financial Performance: Revenue from operations for Q1 FY26 stood at Rs. 419 crore, marking a 5.4% increase compared to Rs. 398 crore in Q1 FY25. EBITDA remained stable at Rs. 72 crore with a slight EBITDA margin decline to 16.4% from 17.5% due to inflation-related cost increases.
Capex and Future Growth: The total capital expenditure for FY26 is planned at Rs. 23 crore aimed at maintenance and strategic brand expansion. The expectation is for a recovery in demand to enhance long-term growth.
Product Launches: Management highlighted the launch of the Senator brand targeting the premium segment and POLIPLUZ, which will cater to the aspirational market in tier 4 cities and villages. Early expectations for POLIPLUZ project revenues stand between Rs. 25 crore to Rs. 30 crore within six months of operations.
Market Recovery Signs: Management noted anticipated signs of recovery starting in the second half of FY26, supported by favorable macroeconomic trends and improvements in liquidity and customer sentiment.
Long-Term Industry Prospects: While short-term demand remains uncertain, the long-term outlook for the sanitaryware industry is expected to improve due to ongoing urban redevelopment and infrastructure initiatives.
Guidance Maintenance: The company maintains its earlier guidance to outperform market growth by 6%-7%, acknowledging that while growth may be uneven in the near term, strategic investments will position CERA favorably to capitalize on future market improvements.
Overall, the management conveyed confidence in their strategies to enhance brand equity, diversify the product portfolio, and strengthen market presence amidst a challenging environment.
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Q1: Can you help us understand how project sales will trend in the near future? What margins typically apply, and which micro-markets are growing?
A1: We reported a 32% YoY growth in our project bank, with positive trends expected to continue. Project sales are influenced by improved liquidity and a flourishing real estate sector, and we foresee them contributing more to our revenues over time. However, project margins are generally 6%-7% lower than retail due to greater discounts required.
Q2: Can you elaborate on POLIPLUZ's pricing strategy, outsourcing mix, and expected SKUs?
A2: POLIPLUZ aims to cater to tier 3 and 4 markets. Brass products are priced midway between PTMT and CERA offerings to entice customers. Initially, the emphasis is on small replacement items. Expected EBITDA margins are between 24%-25%, with a target revenue of Rs. 25-30 crore in FY26 from POLIPLUZ.
Q3: What is the guidance on achieving Rs. 2,900 crore by March 2027? Are you maintaining this?
A3: We remain focused on our target despite market challenges. Although we expect growth to be less than initially projected, signs of recovery in the latter half of FY26 give us confidence that we can still achieve outperformance of 6%-7% against the market.
Q4: For the last quarter, how much was spent on advertising?
A4: We spent Rs. 9.3 crore on advertising this quarter compared to Rs. 11.4 crore last year. The decrease is due to planned promotional activities being scheduled for Q2 and Q3 instead.
Q5: Can you clarify the margin outlook given the projected growth in project sales?
A5: While project sales are growing, we anticipate maintaining margins at 15%-17% over the next 2"“3 years. Despite project sales having lower margins, we will manage costs effectively to uphold overall profitability.
Q6: What competition threats are you currently experiencing? Are you losing market share?
A6: We haven't lost market share but have held steady while competitors push for volume via discounts. Our strategy focuses on maintaining margins and volume, which we believe will stabilize as market conditions improve.
Q7: Can you share the sales figures and growth for each segment in Q1 FY26?
A7: In Q1 FY26, sanitaryware generated Rs. 208.67 crore, faucetware Rs. 161.85 crore, wellness Rs. 6.29 crore, and tiles Rs. 42.61 crore. The corresponding sales in Q1 FY25 were Rs. 209.23 crore, Rs. 142.70 crore, Rs. 5.49 crore, and Rs. 40.59 crore respectively.
Q8: What is the status of your Greenfield expansion for sanitaryware?
A8: We have completed land acquisition for the Greenfield project, but construction has not yet started. We plan to assess the market conditions by year end before making further decisions.
These excerpts summarize the major queries and insightful responses provided during the earnings call, outlining the company's strategic direction and performance metrics.
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% |
| VIKRAM SOMANY | 7.26% |
| REKHA COMMERCIAL PRIVATE LIMITED | 4.09% |
| TRISURE PROMOTIONS & TRADINGS PRIVATE LIMITED | 3.72% |
| CANARA ROBECO MUTUAL FUND A/C CANARA ROBECO SMALL CAP, MULTI CAP AND CONSERVATIVE HYBRID FUND | 2.86% |
| HSBC SMALL CAP FUND | 2.63% |
| DEEPSHIKHA KHAITAN | 2.6% |
| SUVINAY TRADING & INVESTMENT CO. LTD. | 2.48% |
| SAJAN KUMAR PASARI | 1.75% |
| POOJA JAIN SOMANY | 1.55% |
| MADHUSUDAN INDUSTRIES LIMITED | 0.14% |
Distribution across major stakeholders
Distribution across major institutional holders
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 Ceramics | 16.77 kCr | 4.73 kCr | -4.70% | -10.70% | 46.31 | 3.55 | - | - |
| SOMANYCERA | Somany Ceramics | 1.72 kCr | 2.71 kCr | -8.00% | -40.20% | 30.76 | 0.63 | - | - |
| HSIL | Hemant Surgical Industries | 945.61 Cr | - | -8.50% | -37.70% | 113.09 | - | - | - |
| ORIENTBELL | Orient Bell | 395.31 Cr | 671.55 Cr | -6.30% | -17.20% | 60.56 | 0.59 | - | - |
Comprehensive comparison against sector averages
CERA metrics compared to Consumer
| Category | CERA | Consumer |
|---|---|---|
| PE | 27.62 | 56.60 |
| PS | 3.37 | 1.56 |
| Growth | 5.1 % | 37.6 % |
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.
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CERA vs Consumer (2021 - 2025)