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You are here : IndiaNotes >> Research & Analysis >> Companies >> Cera Sanitaryware Ltd. >> Research

Cera Sanitaryware Q2FY18: PAT to grow at a CAGR of 16% over 2016 to 2019E; Overweight

Firstcall India Equity | 07 Dec, 2017  | Follow Author | Add to my Favourites 
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- Cera Sanitaryware Ltd (CERA) is a leading ISO 9001, ISO 14001 and OHSAS 18001 compliant sanitary ware and faucet ware manufacturing Company, with plant located in Kadi, District Mehsana Gujarat.

- The company achieved a turnover of Rs. 2957.20 mn for Q2 FY18 as compared to Rs. 2620.21 mn in the corresponding quarter of the previous year, an increase of 12.86%.

- During the quarter, Net profit stood at Rs. 272.72 mn from Rs. 263.31 mn in the corresponding quarter ending of previous year.

- During the quarter, EBIDTA stood at Rs. 482.91 mn as against Rs. 455.06 mn in the corresponding period of the previous year.

- During the quarter, PBT stood at Rs. 419.32 mn from Rs. 404.94 mn in the corresponding period of the previous year.

- EPS of the company stood at Rs. 20.97 in Q2 FY18 against Rs. 20.25 in the corresponding quarter of the previous year.

- The Revenues of the company has increased to Rs.5402.88 mn in H1FY18 from to Rs.4859.61 mn in H1FY17, higher by 11.18%.

- In H1 FY18, the PAT of the company stood at Rs.465.62 mn as against Rs.484.58 mn in H1FY17. Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 16% over 2016 to 2019E, respectively.

Outlook and Valuation


At the current market price of Rs. 665.00, the stock P/E ratio is at 35.12 x F Y18E and 28.42 X F Y19E respectively. Earning per share (EPS) of the company for the earnings for F Y18E and FY19E is seen at Rs. 18.94 and Rs. 23.40 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 39% and 57% over 2017 to 2019E respectively.

On the basis of EV/EBITDA, the stock trades at 24.49 x for F Y18E and 19.78 x for F Y19E.

Price to Book Value of the stock is expected to be at 16.06 x and 12.50 x for F Y18E and F Y19E respectively.

Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ,, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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