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