Please refer to important disclosures at the end of this report
1
Cera Sanitaryware Limited (Cera) is engaged in the business of manufacturing,
marketing and distribution of sanitaryware, faucetware and trading in tiles and
other bathroom products. Cera enjoys highest margins in sanitaryware business.
Out of the `4,000cr sanitaryware domestic market, Cera derives close to 50% o
f
its sanitaryware revenue from the mass market segment which comprises 40% o
f
the market. Residual business comes from the mid to upper end of the premium
category. Aim of management is to increase mix of premium products out of the
Mehsana facility and cater to the mass market demand largely from outsourcing
locally, thus in turn grow and improve margin using leaner assets. With the focus
on low cost housing and rising acceptance of European style WC it would onl
y
add to the size of opportunity of the organised segment in the years to come,
with presence across mass market and premium segments to help Cera have a
wider audience. The Company has reduced debt and is virtually debt free. The
company has reported consistent profit growth of 24.7% CAGR and health
y
return on equity of 24.3% for the last 5 years. Hence Buy.
BUY
CMP `3,058
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 54.8
MF / Banks / Indian Fls 15.7
FII / NRIs / OCBs 10.1
Indian Public / Others 19.4
Abs. (%) 3m 1yr 3yr
Sensex 8.3 14.8 30.7
Cera Sanitaryware 40.8 70.1 249.1
.
52 Week High / Low 3130/1750
Avg. Daily Volume 2,847
Consumer Durables
Market Cap (
`
cr) 3,978
5
BSE Sensex 29,656
Nifty 9,218
Face Value (
`
)
Reuters Code CERA.BO
0.9
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Cera Sanitaryware
Others | Consumer Durables
April 25, 2017
Cera Sanitaryware | Consumer Durables
A
pril 25, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Cera Sanitaryware
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
Sell
(
< -15
)