CERA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: CERA Sanitaryware Ltd (CERA) Fundamental Rating: 4.0

🧾 Core Financials

Profitability & Growth

PAT up 15.8% QoQ from ₹45.8 Cr to ₹86.8 Cr ➜ strong performance surge.

EPS: ₹190 ➜ robust, supports premium valuation.

Efficiency & Returns

ROE: 18.2%, ROCE: 22.4% ➜ impressive capital efficiency, especially for a mid-cap player.

Leverage & Liquidity

Debt-to-equity: 0.05 ➜ virtually debt-free, signals healthy balance sheet.

Dividend yield: 1.00% ➜ moderate income, balanced with growth focus.

💸 Valuation Overview

Metric Value Interpretation

P/E Ratio 34.3 High but in line with industry

P/B Ratio ~6.23 (6,482 ₹ / 1,041 ₹) ➜ premium pricing

PEG Ratio 2.04 Suggests some overvaluation compared to growth

Industry PE 34.3 Stock priced exactly at sector average

🔍 Conclusion: Fairly valued relative to peers, but growth-adjusted metrics (PEG) hint at limited upside.

🏭 Business Model & Competitive Advantage

Leading brand in sanitaryware, faucets, wellness products—targets mid to premium residential segments.

Leverages India’s real estate and urban infrastructure growth.

Competitive moat includes product diversity, brand strength, and efficient distribution.

Institutional trends

FII holding dropped by 3.40% ➜ profit booking or valuation concerns.

DII holding up 5.13% ➜ domestic conviction—potential re-rating hope.

📉 Technical Signals

RSI: 40.1 ➜ neutral to slightly oversold.

MACD: -20.9 ➜ momentum remains bearish.

Below DMA 50 (₹6,627) and DMA 200 (₹6,724) ➜ cautious technical zone.

✅ Suggested Entry Zone: ₹6,000–₹6,300 📉 Accumulation advisable near ₹6,000 if correction continues.

📅 Long-Term Holding Guide

Hold if

You see sustained growth in Tier-II/Tier-III urban housing.

You believe in India’s premium consumer segment expansion.

You're building a portfolio of cash-rich, brand-driven midcaps.

🧠 Solid fundamentals and brand strength, but valuation discipline is key—best accumulated during broad sector corrections.

Want me to map it against peers like Kajaria Ceramics or Somany? I’d be happy to run a comparison matrix. Just say the word.

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