NSEI:CERA

Stock Analysis Report

Executive Summary

Cera Sanitaryware Limited manufactures, sells, trades in, and outsources sanitary ware and faucet ware products in India.

Rewards

Earnings are forecast to grow 14.12% per year

Earnings grew by 2% over the past year

Pays a reliable dividend of 0.58%

Risk Analysis

No risks detected for CERA from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Cera Sanitaryware's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CERA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

CERA

4.9%

IN Building

-1.1%

IN Market


1 Year Return

-22.1%

CERA

-31.8%

IN Building

-31.7%

IN Market

Return vs Industry: CERA exceeded the Indian Building industry which returned -31.8% over the past year.

Return vs Market: CERA exceeded the Indian Market which returned -31.7% over the past year.


Shareholder returns

CERAIndustryMarket
7 Day-2.9%4.9%-1.1%
30 Day-10.0%-26.2%-25.1%
90 Day-13.2%-28.1%-30.6%
1 Year-21.3%-22.1%-29.0%-31.8%-30.3%-31.7%
3 Year-21.0%-22.4%-19.4%-24.6%-20.1%-24.4%
5 Year-19.3%-21.3%24.7%10.8%-11.0%-15.7%

Price Volatility Vs. Market

How volatile is Cera Sanitaryware's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cera Sanitaryware undervalued compared to its fair value and its price relative to the market?

25.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CERA (₹2244.9) is trading above our estimate of fair value (₹850.25)

Significantly Below Fair Value: CERA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CERA is poor value based on its PE Ratio (25.7x) compared to the Building industry average (7.4x).

PE vs Market: CERA is poor value based on its PE Ratio (25.7x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: CERA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: CERA is overvalued based on its PB Ratio (4x) compared to the IN Building industry average (0.5x).


Next Steps

Future Growth

How is Cera Sanitaryware forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CERA's forecast earnings growth (14.1% per year) is above the savings rate (6.5%).

Earnings vs Market: CERA's earnings (14.1% per year) are forecast to grow slower than the Indian market (19.1% per year).

High Growth Earnings: CERA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CERA's revenue (10.2% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: CERA's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CERA's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Cera Sanitaryware performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CERA has high quality earnings.

Growing Profit Margin: CERA's current net profit margins (8.5%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: CERA's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: CERA's earnings growth over the past year (2%) is below its 5-year average (11.5% per year).

Earnings vs Industry: CERA earnings growth over the past year (2%) exceeded the Building industry 1.6%.


Return on Equity

High ROE: CERA's Return on Equity (15.4%) is considered low.


Next Steps

Financial Health

How is Cera Sanitaryware's financial position?


Financial Position Analysis

Short Term Liabilities: CERA's short term assets (₹7.4B) exceed its short term liabilities (₹3.5B).

Long Term Liabilities: CERA's short term assets (₹7.4B) exceed its long term liabilities (₹1.3B).


Debt to Equity History and Analysis

Debt Level: CERA's debt to equity ratio (11.2%) is considered satisfactory.

Reducing Debt: CERA's debt to equity ratio has reduced from 23.8% to 11.2% over the past 5 years.

Debt Coverage: CERA's debt is well covered by operating cash flow (151%).

Interest Coverage: CERA's interest payments on its debt are well covered by EBIT (19.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Cera Sanitaryware's current dividend yield, its reliability and sustainability?

0.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CERA's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: CERA's dividend (0.58%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: CERA's dividends per share have been stable in the past 10 years.

Growing Dividend: CERA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.8%), CERA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CERA's dividends in 3 years are forecast to be well covered by earnings (23% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Atul Sanghvi (57yo)

0.92

Tenure

₹25,187,000

Compensation

Mr. Atul Sanghvi has been the Chief Executive Officer at Cera Sanitaryware Limited since May 14, 2019. Mr. Sanghvi served as the Chief Operating Officer of Cera Sanitaryware Limited since October 10, 2012. ...


CEO Compensation Analysis

Compensation vs Market: Atul's total compensation ($USD331.41K) is about average for companies of similar size in the Indian market ($USD344.71K).

Compensation vs Earnings: Atul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vikram Somany
Chairman & MD11.67yrs₹57.00m17.59% 5.2b
Atul Sanghvi
CEO & Executive Director0.92yr₹25.19m0.00014% 41.1k
Deepshikha Khaitan
Non-Executive Vice Chairperson & Joint MD3.92yrs₹450.00k2.61% 766.4m
Rajesh Shah
CFO & COO - Fin. & Comm.no datano data0.00017% 50.0k
Ayush Bagla
Executive Director2yrs₹440.00kno data
Hemal Sadiwala
Company Secretary & Compliance Officerno datano datano data
P. Shashidharan
President of Marketing1.25yrsno datano data
Abbey Rodrigues
President of Sales1.25yrsno datano data
Vivek Tewari
President of Works6.33yrsno datano data
Bimal Patodia
Executive Vice Presidentno data₹5.71mno data

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: CERA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vikram Somany
Chairman & MD11.67yrs₹57.00m17.59% 5.2b
Atul Sanghvi
CEO & Executive Director0.92yr₹25.19m0.00014% 41.1k
Deepshikha Khaitan
Non-Executive Vice Chairperson & Joint MD3.92yrs₹450.00k2.61% 766.4m
Ayush Bagla
Executive Director2yrs₹440.00kno data
Sajan Pasari
Non-Executive Independent Director15.83yrs₹440.00k1.82% 534.9m
Lalit Bohania
Non-Executive Independent Director6.75yrs₹440.00kno data
Jugal Taparia
Non-Executive Independent Director2.75yrs₹430.00kno data
Surendra Baid
Non Executive Independent Director2yrs₹430.00kno data
Akriti Jain
Non-Executive Independent Director1.42yrs₹410.00kno data

3.9yrs

Average Tenure

57yo

Average Age

Experienced Board: CERA's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cera Sanitaryware Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cera Sanitaryware Limited
  • Ticker: CERA
  • Exchange: NSEI
  • Founded: 1980
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: ₹29.392b
  • Shares outstanding: 13.01m
  • Website: https://www.cera-india.com

Number of Employees


Location

  • Cera Sanitaryware Limited
  • Privilon
  • 7th & 8th Floor
  • Ahmedabad
  • Gujarat
  • 380059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532443BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2005
CERANSEI (National Stock Exchange of India)YesEquity SharesININRJul 2005

Biography

Cera Sanitaryware Limited manufactures, sells, trades in, and outsources sanitary ware and faucet ware products in India. It offers sanitary ware products, including EWC’s, wash basins, urinals, electronic flushing systems, cisterns, seat covers, green products, bath accessories, and kids range products, as well as special needs products and water heaters. The company also provides faucets comprising single lever faucets, quarter and half turn faucets, sensor taps, overhead and hand showers, bath spouts, shower arms, special category pillar cocks and bib cocks, flush valves, flush and angle cocks, health faucets, bathroom allied products and accessories, and other auxiliary products; and wellness products consisting of steam shower rooms, shower cubicles and partitions, bath tubs and whirlpool, fillers, shower panels, indoor swimming pools, and pressure pumps. In addition, it offers kitchen sinks; mirrors, faucet cleaners, sealants, wall and floor tiles and adhesives, and other products. The company also exports its products. The company was formerly known as Madhusudan Oils and Fats Limited and changed its name to Cera Sanitaryware Limited in November 2002. Cera Sanitaryware Limited was founded in 1980 and is based in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:28
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.