Cera Sanitaryware Limited Just Recorded A 11% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Cera Sanitaryware Limited (NSE:CERA) just kicked off its latest full-year results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.7% to hit ₹20b. Cera Sanitaryware reported statutory earnings per share (EPS) ₹190, which was a notable 11% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cera Sanitaryware after the latest results.

We've discovered 2 warning signs about Cera Sanitaryware. View them for free.

Following the latest results, Cera Sanitaryware's 13 analysts are now forecasting revenues of ₹21.1b in 2026. This would be a modest 6.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 2.4% to ₹196. In the lead-up to this report, the analysts had been modelling revenues of ₹21.6b and earnings per share (EPS) of ₹198 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

View our latest analysis for Cera Sanitaryware

The average price target was steady at ₹7,171even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Cera Sanitaryware, with the most bullish analyst valuing it at ₹8,895 and the most bearish at ₹6,106 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Cera Sanitaryware's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that Cera Sanitaryware is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Cera Sanitaryware going out to 2028, and you can see them free on our platform here.

Even so, be aware that Cera Sanitaryware is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

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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.