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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532443 | NSE: CERA

Cera Sanitaryware Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:33 pm

Market Cap 9,116 Cr.
Current Price 7,009
High / Low11,500/6,551
Stock P/E37.8
Book Value 938
Dividend Yield0.86 %
ROCE24.6 %
ROE19.0 %
Face Value 5.00
PEG Ratio2.12

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Cera Sanitaryware Ltd

Competitors of Cera Sanitaryware Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Exxaro Tiles Ltd 390 Cr. 87.1128/76.0 60.90.00 %4.54 %0.72 % 10.0
Carysil Ltd 2,196 Cr. 7731,151/72134.6 1740.26 %17.1 %17.6 % 2.00
Somany Ceramics Ltd 2,642 Cr. 644873/56133.2 1800.47 %14.4 %12.9 % 2.00
Orient Bell Ltd 457 Cr. 313447/300683 2140.16 %0.97 %0.34 % 10.0
Nitco Ltd 818 Cr. 114127/26.8 82.20.00 %14.0 %% 10.0
Industry Average3,917.56 Cr1,025.88146.02198.150.38%11.55%19.42%7.00

All Competitor Stocks of Cera Sanitaryware Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales223393387439396414456533427461437547398
Expenses203335326356335348383445358387377455342
Operating Profit20586182616673886874599256
OPM %9%15%16%19%15%16%16%17%16%16%14%17%14%
Other Income6740-0111451611161616
Interest1112111211111
Depreciation7888788888998
Profit before tax17565673536877837576659863
Tax %25%25%25%29%25%25%27%25%25%25%22%23%25%
Net Profit13424252405156635657517547
EPS in Rs9.9332.3632.5040.0430.4739.0043.3448.3943.3443.7439.1257.6936.11

Last Updated: September 12, 2024, 1:49 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 12, 2024, 1:49 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4886648229171,0111,1821,3441,2091,2021,4421,8031,8711,842
Expenses4125697037768411,0141,1521,0451,0521,2201,5101,5771,560
Operating Profit7695119141171168191164150221293295282
OPM %16%14%14%15%17%14%14%14%12%15%16%16%15%
Other Income96510111415142217255960
Interest7685553445555
Depreciation9121516182223333330303435
Profit before tax6882101129158154180141134203282314302
Tax %32%37%33%36%34%35%36%18%25%27%26%24%
Net Profit46526883104100115116101149210239230
EPS in Rs36.5241.0252.0264.1779.9477.0888.4689.1477.89114.84161.20183.89176.66
Dividend Payout %11%12%12%14%15%16%15%15%17%30%31%33%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)13.04%30.77%22.06%25.30%-3.85%15.00%0.87%-12.93%47.52%40.94%13.81%
Change in YoY Net Profit Growth (%)0.00%17.73%-8.71%3.24%-29.15%18.85%-14.13%-13.80%60.46%-6.59%-27.13%

Cera Sanitaryware Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:7%
3 Years:16%
TTM:0%
Compounded Profit Growth
10 Years:16%
5 Years:16%
3 Years:33%
TTM:1%
Stock Price CAGR
10 Years:15%
5 Years:24%
3 Years:9%
1 Year:-19%
Return on Equity
10 Years:18%
5 Years:17%
3 Years:18%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:32 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6666666666666
Reserves1732183454155185986947668689991,1631,3361,213
Borrowings61486835342418332837464061
Other Liabilities139181224290302320371320381385441443422
Total Liabilities3804536447478619491,0891,1261,2831,4271,6561,8251,702
Fixed Assets125152215226266279305350330321320356384
CWIP4584051111117134
Investments1124867119139212262513567669807644
Other Assets249284374449475525561512440539649649670
Total Assets3804536447478619491,0891,1261,2831,4271,6561,8251,702

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +4263411161127211412326298156228
Cash from Investing Activity +-36-48-117-38-92-36-102-76-243-70-101-140
Cash from Financing Activity +2-2576-48-20-34-27-53-13-21-59-80
Net Cash Flow9-10-130-01-15-677-38

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow15.0047.0051.00106.00137.00144.00173.00131.00122.00184.00247.00255.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days625972758083816763423839
Inventory Days1601251201099810410112896154167148
Days Payable4745464858505352811049375
Cash Conversion Cycle1761391451371201361291427892112112
Working Capital Days645263555364637330434848
ROCE %35%35%32%30%31%26%27%19%16%22%26%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%54.48%
FIIs17.95%18.75%19.92%18.34%17.89%17.52%18.03%19.44%20.92%20.63%21.93%21.45%
DIIs11.82%10.96%9.98%10.60%9.75%9.37%9.73%9.04%8.38%8.38%6.61%7.30%
Public15.75%15.82%15.62%16.59%17.92%18.64%17.77%17.05%16.26%16.53%16.98%16.79%
No. of Shareholders17,63119,90320,30322,07627,55637,75239,21343,81642,31634,87834,80433,123

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Canara Robeco Small Cap Fund218,8231.63195.4818,1232024-11-151107.43%
ITI Multi Cap Fund18,1231.1916.1918,1232024-11-150%
Sundaram Small Cap Fund11,2420.2910.0418,1232024-11-15-37.97%
LIC MF ULIS 10 Yrs Regular Premium Reducing cover7,5441.286.7418,1232024-11-15-58.37%
LIC MF ULIS 10 Yrs Regular Premium Uniform cover7,5441.286.7418,1232024-11-15-58.37%
LIC MF ULIS 10 Yrs Single Premium7,5441.286.7418,1232024-11-15-58.37%
LIC MF ULIS 15 Yrs Regular Premium Reducing cover7,5441.286.7418,1232024-11-15-58.37%
LIC MF ULIS 15 Yrs Regular Premium Uniform cover7,5441.286.7418,1232024-11-15-58.37%
LIC MF ULIS 5 Years Single Premium7,5441.286.7418,1232024-11-15-58.37%
Canara Robeco Conservative Hybrid Fund3,6000.383.6618,1232024-11-15-80.14%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)183.76161.01116.1877.4887.08
Diluted EPS (Rs.)183.76161.01116.1877.4887.08
Cash EPS (Rs.)213.65187.35142.51107.24114.80
Book Value[Excl.RevalReserv]/Share (Rs.)1044.56909.79791.48679.28598.52
Book Value[Incl.RevalReserv]/Share (Rs.)1044.56909.79791.48679.28598.52
Revenue From Operations / Share (Rs.)1445.061386.691111.68941.37940.88
PBDIT / Share (Rs.)278.93252.61194.05140.87141.24
PBIT / Share (Rs.)250.83227.54169.13110.45111.43
PBT / Share (Rs.)245.16219.04160.66102.97103.70
Net Profit / Share (Rs.)185.55162.27117.6076.8284.99
NP After MI And SOA / Share (Rs.)183.77161.01116.1877.4887.08
PBDIT Margin (%)19.3018.2117.4514.9615.01
PBIT Margin (%)17.3516.4015.2111.7311.84
PBT Margin (%)16.9615.7914.4510.9311.02
Net Profit Margin (%)12.8411.7010.578.169.03
NP After MI And SOA Margin (%)12.7111.6110.458.239.25
Return on Networth / Equity (%)17.7517.8514.8811.5614.69
Return on Capital Employeed (%)22.2623.0619.6614.2916.05
Return On Assets (%)12.9512.489.737.319.28
Long Term Debt / Equity (X)0.000.000.010.020.02
Total Debt / Equity (X)0.010.020.020.050.08
Asset Turnover Ratio (%)1.071.121.030.961.04
Current Ratio (X)3.743.242.682.422.28
Quick Ratio (X)2.792.272.011.881.51
Inventory Turnover Ratio (X)0.670.760.720.410.49
Dividend Payout Ratio (NP) (%)27.2021.7311.180.0029.85
Dividend Payout Ratio (CP) (%)23.5918.809.210.0022.24
Earning Retention Ratio (%)72.8078.2788.820.0070.15
Cash Earning Retention Ratio (%)76.4181.2090.790.0077.76
Interest Coverage Ratio (X)62.3254.3247.7918.8318.28
Interest Coverage Ratio (Post Tax) (X)42.7236.7231.0511.2712.00
Enterprise Value (Cr.)8811.028314.106496.105152.103091.84
EV / Net Operating Revenue (X)4.694.614.494.212.53
EV / EBITDA (X)24.2925.3125.7428.1216.83
MarketCap / Net Operating Revenue (X)4.694.604.474.152.45
Retention Ratios (%)72.7978.2688.810.0070.14
Price / BV (X)6.557.086.375.833.89
Price / Net Operating Revenue (X)4.694.604.474.152.45
EarningsYield0.020.020.020.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Cera Sanitaryware Ltd as of November 18, 2024 is: 6,794.65

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 18, 2024, Cera Sanitaryware Ltd is Overvalued by 3.06% compared to the current share price 7,009.00

Intrinsic Value of Cera Sanitaryware Ltd as of November 18, 2024 is: 8,003.84

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 18, 2024, Cera Sanitaryware Ltd is Undervalued by 14.19% compared to the current share price 7,009.00

Last 5 Year EPS CAGR: 17.80%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 27.00%, which is a positive sign.
  2. The company has higher reserves (715.85 cr) compared to borrowings (41.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (223.08 cr) and profit (172.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 54.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 126.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Cera Sanitaryware Ltd:
    1. Net Profit Margin: 12.84%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.26% (Industry Average ROCE: 11.55%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.75% (Industry Average ROE: 17.47%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 42.72
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.79
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 37.8 (Industry average Stock P/E: 87.61)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Cera Sanitaryware Ltd. is a Public Limited Listed company incorporated on 17/07/1998 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L26910GJ1998PLC034400 and registration number is 034400. Currently Company is involved in the business activities of Manufacture of non-metallic mineral products. Company’s Total Operating Revenue is Rs. 1441.76 Cr. and Equity Capital is Rs. 6.50 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Ceramics/Tiles/Sanitaryware9, GIDC Industrial Estate, Kadi, Mehsana Dist. Gujarat 382715kadi@cera-india.com
http://www.cera-india.com
Management
NamePosition Held
Mr. Vikram SomanyChairman & Managing Director
Mrs. Deepshikha KhaitanJoint Managing Director
Mr. Anupam GuptaExecutive Director -Technical
Mr. Surendra Singh BaidIndependent Director
Ms. Akriti JainIndependent Director
Mr. Ravi BhamidipatyIndependent Director
Mr. Anandh SundarIndependent Director

FAQ

What is the latest intrinsic value of Cera Sanitaryware Ltd?

The latest intrinsic value of Cera Sanitaryware Ltd as on 18 November 2024 is ₹6794.65, which is 3.06% lower than the current market price of ₹7,009.00.

What is the Market Cap of Cera Sanitaryware Ltd?

The Market Cap of Cera Sanitaryware Ltd is 9,116 Cr..

What is the current Stock Price of Cera Sanitaryware Ltd as on 18 November 2024?

The current stock price of Cera Sanitaryware Ltd as on 18 November 2024 is ₹7,009.

What is the High / Low of Cera Sanitaryware Ltd stocks in FY 2024?

In FY 2024, the High / Low of Cera Sanitaryware Ltd stocks is 11,500/6,551.

What is the Stock P/E of Cera Sanitaryware Ltd?

The Stock P/E of Cera Sanitaryware Ltd is 37.8.

What is the Book Value of Cera Sanitaryware Ltd?

The Book Value of Cera Sanitaryware Ltd is 938.

What is the Dividend Yield of Cera Sanitaryware Ltd?

The Dividend Yield of Cera Sanitaryware Ltd is 0.86 %.

What is the ROCE of Cera Sanitaryware Ltd?

The ROCE of Cera Sanitaryware Ltd is 24.6 %.

What is the ROE of Cera Sanitaryware Ltd?

The ROE of Cera Sanitaryware Ltd is 19.0 %.

What is the Face Value of Cera Sanitaryware Ltd?

The Face Value of Cera Sanitaryware Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Cera Sanitaryware Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE