Cera Sanitaryware Limited

Cera Sanitaryware Limited is engaged in the business of manufacturing, selling and trading of various kinds of building products. It also has non-conventional wind & solar power for captive use in the state of Gujarat. The company's products include various kinds of sanitaryware, faucetware, bath accessories, kitchen sinks, mirrors, ceramic tiles, modular kitchens, etc. Its portfolio includes various aspects of price and design matrix for mass, mid, premium and luxury categories. The company has launched 136 Sanitaryware and 744 Faucetware new products since April,22. The company has 9 CSS at Ahmedabad/Mohali (Upcoming)/Hyderabad/Chennai/Cochin/Kolkata/Morbi/Trivandrum/Bangalore. The average size of these company-owned showrooms is ~7,000 sq. ft. Hyderabad CSS is the largest for ~14,000 sqft. The company also has 276 CSGs which are dealer-owned. (~1000 sqft.) Cera has 154 CSH Pan India which are dealer owned. (~800 sqft.) As of Q3FY24, company has 1,088 Style Centre, ~1,400 CSCs planned in the next 3-4 years. (~100 - 200 sqft) As of Q3FY24, The company has a strong dealer network which includes ~6,000 dealers and ~11,300 retailers across India. It operates ~30 depots at centralized locations across India for distribution of its products. Presently, the company owns and operates 1 manufacturing facility in Mehsana, Gujarat with a total manufacturing capacity of ~34,000 MTPA of ceramic sanitaryware and ~28 lakh pieces P.A. of faucet ware. The financials of the company is good, RoNW is 19% and at CMP its looks fully priced. Price difference is around 22% from CMP and acceptance ratio as per current share holding for retail will be around 1%, so final buyback ration may be within 10% and one may get around 1-2% on investment. So we give AVOID rating to this buyback, those who are currently holding may participate in buyback.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal