NSEI:CERA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.

Risks

  • Cera Sanitaryware has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-4.5%

NSEI:CERA

-1.3%

IN Building

-0.7%

IN Market


1 Year Return

-9.9%

NSEI:CERA

-12.8%

IN Building

-12.1%

IN Market

CERA outperformed the Building industry which returned -12.8% over the past year.

CERA outperformed the Market in India which returned -12.1% over the past year.


Share holder returns

CERAIndustryMarket
7 Day-4.5%-1.3%-0.7%
30 Day-9.5%-6.8%-3.2%
90 Day-17.2%-14.5%-7.6%
1 Year-9.5%-9.9%-12.3%-12.8%-10.3%-12.1%
3 Year2.6%1.3%16.3%14.2%18.9%12.8%
5 Year48.2%45.4%84.7%78.5%37.6%24.7%

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 based on future cash flows and its price relative to the stock market?

28.08x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cera Sanitaryware's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cera Sanitaryware's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cera Sanitaryware is overvalued based on earnings compared to the IN Building industry average.

Cera Sanitaryware is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Cera Sanitaryware is poor value based on expected growth next year.


Price Based on Value of Assets

Cera Sanitaryware is overvalued based on assets compared to the IN Building industry average.


Next Steps

Future Growth

How is Cera Sanitaryware expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cera Sanitaryware's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).

Cera Sanitaryware's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).

Cera Sanitaryware's revenue growth is expected to exceed the India market average.

Cera Sanitaryware's earnings growth is positive but not above the India market average.

Cera Sanitaryware's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Cera Sanitaryware is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Cera Sanitaryware performed over the past 5 years?

14.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cera Sanitaryware's year on year earnings growth rate has been positive over the past 5 years.

Cera Sanitaryware's 1-year earnings growth is less than its 5-year average (6.2% vs 14.7%)

Cera Sanitaryware's earnings growth has exceeded the IN Building industry average in the past year (6.2% vs -5.5%).


Return on Equity

Cera Sanitaryware has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cera Sanitaryware used its assets more efficiently than the IN Building industry average last year based on Return on Assets.


Return on Capital Employed

Cera Sanitaryware's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cera Sanitaryware's financial position?


Financial Position Analysis

Cera Sanitaryware is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cera Sanitaryware's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Cera Sanitaryware's level of debt (12.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (19% vs 12.7% today).

Debt is well covered by operating cash flow (137.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 24.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 8.2x debt.


Next Steps

Dividend

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

0.62%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cera Sanitaryware's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.63%).

Cera Sanitaryware's dividend is below the markets top 25% of dividend payers in India (2.52%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (6.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (7x coverage).


Next Steps

Management

What is the CEO of Cera Sanitaryware's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Atul Sanghvi (57yo)

0.3yrs

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

Atul's remuneration is about average for companies of similar size in India.

Atul's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.6yrs

Average Tenure

58.5yo

Average Age

The average tenure for the Cera Sanitaryware management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

The tenure for the Cera Sanitaryware board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Vikram Somany (70yo)

    Chairman & MD

    • Tenure: 11.0yrs
    • Compensation: ₹57.00m
  • P. Shashidharan (61yo)

    President of Marketing

    • Tenure: 0.6yrs
  • Rajesh Shah (60yo)

    CFO & COO - Fin. & Comm.

    • Tenure: 0.0yrs
  • Atul Sanghvi (57yo)

    CEO & Executive Director

    • Tenure: 0.3yrs
    • Compensation: ₹25.19m
  • Narendra Patel (60yo)

    President

    • Tenure: 0.0yrs
  • Abbey Rodrigues (48yo)

    President of Sales

    • Tenure: 0.6yrs
  • Vivek Tewari (51yo)

    President of Works

    • Tenure: 5.7yrs
  • Bimal Patodia (69yo)

    Executive Vice President

    • Tenure: 0.0yrs
  • N. Jaydeep (49yo)

    General Manager

    • Tenure: 0.0yrs
    • Compensation: ₹6.80m
  • G. Chowdary (53yo)

    Asst. General Manager

    • Tenure: 0.0yrs
    • Compensation: ₹4.62m

Board Members

  • Vikram Somany (70yo)

    Chairman & MD

    • Tenure: 11.0yrs
    • Compensation: ₹57.00m
  • Atul Sanghvi (57yo)

    CEO & Executive Director

    • Tenure: 0.3yrs
    • Compensation: ₹25.19m
  • Sajan Pasari (72yo)

    Non-Executive Independent Director

    • Tenure: 15.2yrs
    • Compensation: ₹440.00k
  • Deepshikha Khaitan (44yo)

    Non-Executive Vice Chairperson

    • Tenure: 3.3yrs
    • Compensation: ₹450.00k
  • Lalit Bohania (56yo)

    Non-Executive Independent Director

    • Tenure: 6.1yrs
    • Compensation: ₹440.00k
  • Jugal Taparia (71yo)

    Non-Executive Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹430.00k
  • Ayush Bagla (46yo)

    Additional Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹440.00k
  • Surendra Baid (68yo)

    Additional Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹430.00k
  • Akriti Jain (33yo)

    Non-Executive Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹410.00k

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: ₹31.675b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 12:53
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
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.