At a Glance
Cera Sanitaryware, the brand making your bathroom Instagram-worthy, posted Q1 FY26 revenue ₹419 Cr (flat YoY) and PAT ₹46.5 Cr (down 1% YoY). Margins at 13% OPM suggest the company is fighting cost pressures. Despite being debt-free with a ROCE of 22%, the stock has crashed 36% in a year, proving even premium tiles can crack.
Introduction
Cera is India’s go-to for sanitaryware, faucetware, and wellness products—basically everything in a bathroom except the plumber. Backed by a strong brand and premium image, the company still battles slow growth and a post-COVID real-estate slump. With consumer demand trickling instead of gushing, Cera’s growth story is… well, dripping.
Business Model (WTF Do They Even Do?)
- Sanitaryware: Core segment with premium branding under CERA and luxury segment under CERA Luxe.
- Faucetware & Tiles: Expanding footprint to capture home improvement trends.
- Wellness Products: Bathtubs, shower panels, enclosures—because rich people need spa vibes at home.
- Renewables: Owns wind & solar power for captive use in Gujarat—because ESG sells.
Cera sells aspirational products but remains tied to India’s volatile housing and construction cycles.
Financials Overview
Q1 FY26
- Revenue: ₹419 Cr (5% growth QoQ, flat YoY)
- Operating Profit: ₹53 Cr (OPM 13%)
- PAT: ₹46.5 Cr (EPS ₹35.8)
FY25
- Revenue ₹1,915 Cr (+2%)
- PAT ₹246 Cr (+3%)
- ROE 18.3%, ROCE 22.4%
💡 Commentary: Growth is crawling, margins holding up. Debt-free status saves the day, but valuations are still steep.
Valuation
Step 1: P/E Method
- EPS (TTM) ₹189
- Industry P/E ~25x
- Fair Value ≈ ₹4,500 – ₹5,000
Step 2: EV/EBITDA
- EBITDA (TTM) ₹288 Cr
- EV/EBITDA (sector avg 15x) → EV ₹4,320 Cr
- Per share
