CERA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.0

📈 Positive

• 💰 Strong return metrics — ROCE at 22.4% and ROE at 18.3% reflect efficient capital utilization.
• 📉 Low debt (Debt-to-equity: 0.05) ensures financial stability and minimal interest burden.
• 📘 High book value of ₹1,038 supports long-term asset strength and intrinsic valuation.
• 📈 DII holding increased by 1.49%, showing strong domestic institutional confidence.
• 📊 EPS of ₹189 indicates solid earnings power relative to price.

⚠️ Limitation

• 📉 High P/E of 32.8 slightly above industry average (32.5), suggesting premium pricing.
• 📉 PEG ratio of 1.91 implies valuation may be stretched relative to growth.
• 📉 Quarterly PAT declined from ₹86.8 Cr. to ₹46.5 Cr., signaling margin pressure.
• 📉 MACD at -38.9 suggests bearish momentum despite RSI at 54.6.

📰 Company Negative News

• 📉 FII holding dropped by 1.35%, indicating reduced foreign investor interest.
• 📉 Stock down 39.2% from 52-week high, reflecting market caution or sectoral headwinds.

🌟 Company Positive News

• 📈 Trading near DMA50 (₹6,199), offering technical support zone.
• 📈 Volume above 1-week average suggests rising investor interest.

🏭 Industry

• 🚿 CERA operates in sanitaryware and bathroom solutions, benefiting from urbanization and real estate growth.
• 📊 Industry P/E of 32.5 reflects moderate growth expectations and premium brand positioning.

🧭 Conclusion

• 📌 Suggested entry zone: ₹5,900–₹6,100, near DMA50 and below recent highs.
• 🕰️ Long-term holding favorable due to strong fundamentals, brand strength, and low debt.
• ⚖️ Monitor earnings recovery and valuation metrics before aggressive accumulation.