Cera Sanitaryware Limited Just Missed Earnings - But Analysts Have Updated Their Models

Cera Sanitaryware Limited (NSE:CERA) just released its latest quarterly report and things are not looking great. Unfortunately, Cera Sanitaryware delivered a serious earnings miss. Revenues of ₹4.4b were 13% below expectations, and statutory earnings per share of ₹39.12 missed estimates by 20%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Cera Sanitaryware

Taking into account the latest results, the current consensus from Cera Sanitaryware's five analysts is for revenues of ₹21.3b in 2025. This would reflect a notable 14% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 13% to ₹197. In the lead-up to this report, the analysts had been modelling revenues of ₹23.5b and earnings per share (EPS) of ₹231 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 5.3% to ₹8,460. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Cera Sanitaryware, with the most bullish analyst valuing it at ₹9,999 and the most bearish at ₹7,463 per share. This is a very narrow spread of estimates, implying either that Cera Sanitaryware is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 17% annually. So it's pretty clear that Cera Sanitaryware is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Cera Sanitaryware going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Cera Sanitaryware Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.