Cera Sanitaryware Limited (CERA) AI Stock Analysis

• Market Cap: ₹64.47B
• Dividend Yield: 1.23%
• Average Volume (3M): 497.00
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.96
• Revenue Growth: 3.30%
• EPS Growth: -1.97%
• Country: IN
• Employees: 2,510
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Construction
• EPS (TTM): 43.90
• Shares Outstanding: 12,897,541
• 10 Day Avg. Volume: 345
• 30 Day Avg. Volume: 497
• PEG Ratio: 8.20
• Price to Book (P/B): 5.40
• Price to Sales (P/S): 3.68
• P/FCF Ratio: 78.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹5,278.00 ▲(2.23% Upside)

Cera Sanitaryware Limited's strong financial performance is the most significant factor, showcasing robust growth and stability. However, technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Healthy Profit Margins

Sustained gross and net margins indicate durable cost control and pricing power across product lines. This supports long-term operating cash flow, funds ongoing product development and showroom expansion, and cushions earnings through commodity or input-cost cycles.

Strong Balance Sheet and Low Leverage

A low debt-to-equity ratio and healthy equity base give the company financial flexibility to fund capex, expand distribution, and absorb downturns without needing costly external financing. This underpins strategic investments and risk resilience over multiple cycles.

Consistent Free Cash Flow Generation

Reliable free cash flow and good cash conversion allow internal funding of growth initiatives, working-capital needs and potential shareholder returns. Strong cash generation reduces dependence on external funding and supports sustainable reinvestment.

Negative Factors

Subdued Revenue Growth Rate

A low single-digit revenue growth rate indicates limited top-line momentum versus industry expansion potential. Over the medium term, slower revenue growth constrains the company’s ability to scale margins, invest in premiumization, and materially lift absolute earnings.

Negative EPS Growth Trend

Declining EPS growth suggests per-share profitability is under pressure, possibly from margin mix shifts, higher costs, or investment dilution. Persistent negative EPS trends can limit capital return capacity and erode investor confidence in long-term earnings trajectory.

Cyclical Dependence on Construction and Distribution

Heavy dependence on real-estate cycles, developer projects and dealer-led retail makes revenues sensitive to housing downturns and project delays. This structural exposure can cause procyclical revenue swings and complicate steady growth planning across 2–6 month horizons.

Cera Sanitaryware Limited Business Overview & Revenue Model

Company Description

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, cisterns, seat covers, urinals, electronic flushing systems, water saving products, bath accessories, and kids range products, as well as special needs products. The company also provides faucets comprising single lever faucets, foot operated faucets, quarter and half turn faucets, sensor and touch faucets, showers, health faucets, bathroom allied products and accessories, and other auxiliary products and special needs faucets; and wellness products consisting of steam shower rooms, shower cubicles and partitions, bath tubs and whirlpool, fillers, shower panels, indoor swimming pools, and pressure pumps. In addition, it offers kitchen sinks, mirrors, and water heaters, as well as wall and floor tiles. It also exports its products. The company was formerly known as Madhusudan Oils and Fats Limited and changed its name to Cera Sanitaryware Limited in November 2002. Cera Sanitaryware Limited was founded in 1980 and is based in Ahmedabad, India.

How the Company Makes Money

Cera Sanitaryware Limited generates revenue primarily through the sale of its wide range of sanitary ware products, including toilets, basins, and bathroom accessories. The company's revenue model is centered around direct sales to consumers through a network of dealers and distributors, as well as partnerships with builders and contractors for large-scale projects. Key revenue streams include retail sales from showrooms and online platforms, bulk orders from commercial clients, and exports to international markets. Additionally, CERA benefits from brand loyalty and market reputation, which contribute to repeat business and customer retention. The company also engages in strategic collaborations with architects and interior designers, enhancing its market visibility and driving additional sales.

Cera Sanitaryware Limited Financial Statement Overview

Summary

Cera Sanitaryware Limited demonstrates robust financial health with strong revenue and profit growth. The balance sheet is stable with low leverage, and cash flow remains positive, supporting operational needs and future investments.

Income Statement

Cera Sanitaryware Limited has shown strong revenue growth over the years, with a notable increase in total revenue from previous years. The Gross Profit Margin and Net Profit Margin have remained robust, indicating efficient cost management and strong profitability. EBIT and EBITDA margins are healthy, reflecting effective operating performance. Overall, the income statement demonstrates solid growth and profitability.

Balance Sheet

The company's balance sheet is stable with a strong equity base. The Debt-to-Equity Ratio is low, indicating prudent financial leverage. Return on Equity has improved, showcasing efficient use of shareholders' funds. The Equity Ratio is healthy, underscoring financial stability. While total debt has seen slight fluctuations, the overall financial position remains strong with low risk.

Cash Flow

Cera's cash flow position is solid with consistent free cash flow generation. Operating Cash Flow to Net Income Ratio reflects good cash conversion. Although Free Cash Flow has seen some fluctuations, the company maintains a positive trajectory. The cash flow analysis highlights efficient cash management and potential for reinvestment and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.48B	19.87B	18.79B	18.04B	14.42B	12.24B
Gross Profit	9.47B	10.75B	9.84B	9.79B	7.59B	5.91B
EBITDA	3.58B	3.60B	3.61B	3.23B	2.46B	1.83B
Net Income	2.46B	2.46B	2.39B	2.09B	1.51B	1.01B
Balance Sheet
Total Assets	0.00	18.63B	18.46B	16.77B	15.52B	13.78B
Cash, Cash Equivalents and Short-Term Investments	7.01B	7.01B	8.10B	6.56B	5.41B	4.43B
Total Debt	0.00	673.66M	444.67M	530.92M	452.11M	792.59M
Total Liabilities	-13.68B	4.95B	4.87B	4.93B	5.22B	4.94B
Stockholders Equity	13.68B	13.54B	13.46B	11.73B	10.15B	8.72B
Cash Flow
Free Cash Flow	0.00	933.18M	1.71B	1.23B	781.31M	2.53B
Operating Cash Flow	0.00	1.22B	2.36B	1.62B	979.82M	2.68B
Investing Cash Flow	0.00	1.27B	-1.43B	-1.05B	-719.01M	-2.42B
Financing Cash Flow	0.00	-2.60B	-835.02M	-596.00M	-105.60M	-188.32M

Cera Sanitaryware Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5163.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CERA, the sentiment is Negative. The current price of 5163.05 is above the 20-day moving average (MA) of 5061.73, below the 50-day MA of 5234.95, and below the 200-day MA of 6026.70, indicating a bearish trend. The MACD of -88.74 indicates Negative momentum. The RSI at 41.60 is Neutral, neither overbought nor oversold. The STOCH value of 47.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CERA.

Cera Sanitaryware Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAJARIACER	69 Neutral	₹143.43B	38.13	―	1.15%	-0.24%	-4.87%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SOMANYCERA	62 Neutral	₹16.80B	25.71	―	0.71%	4.20%	-31.88%
CERA	61 Neutral	₹64.47B	27.29	―	1.23%	3.30%	-1.97%
FINPIPE	61 Neutral	₹109.42B	22.24	―	1.19%	-3.53%	-40.09%
ORIENTALTL	48 Neutral	₹529.99M	4.59	―	―	293.84%	―
NITCO	37 Underperform	₹18.91B	-0.92	―	―	51.15%	-265.53%

Cera Sanitaryware Limited Corporate Events

Cera Sanitaryware to Host Q3 FY26 Earnings Call on 5 February 2026

Cera Sanitaryware Limited has announced that it will host its Q3 FY26 earnings conference call for analysts and investors on Thursday, February 5, 2026, at 10:30 a.m. IST, following the release of its quarterly results on February 4, 2026. The call will open with a management discussion of the Q3 performance, followed by an interactive Q&A session, underscoring the company’s efforts to maintain transparent communication with the investment community and provide deeper insight into its operational and financial trajectory, with materials to be made available on its corporate website.