ICICI Securities has issued a buy rating on Cera Sanitaryware with a target price of ₹7,350 in its research report dated August 08, 2026. According to the brokerage's analysis, the recommendation is based on reasonable valuations and upgraded from their previous stance. The target price represents a significant upside potential from current market levels.
Cera Sanitaryware reported in-line revenue growth of 19.5% YoY for Q1FY27, as reported by ICICI Securities. The company's faucetware segment grew 14.1% YoY while the sanitaryware segment expanded 25.3% YoY. However, operating profit margin (OPM) contracted 292 basis points YoY to 10.1%, declining further by 557 basis points QoQ. The margin compression was primarily attributed to gross margin shrinking 547 basis points YoY due to delayed price hikes, resulting in an EBITDA decline of 7.3% YoY.
Management indicated that retail segment demand continued to improve while the project segment remained healthy, according to ICICI Securities report. The company has implemented price hikes of approximately 12% in sanitaryware and 16% in faucetware segments during March-May 2026 for the retail segment, which accounts for around 60% of total revenue. Management has provided guidance for 18-20% revenue growth and 13.5-14% OPM for FY27, with the price hikes expected to support margin recovery.
ICICI Securities has upgraded its recommendation to buy from add due to the company's reasonable valuations and improved outlook. The brokerage has rolled over its June 2027 target price to ₹7,350, reflecting confidence in the company's ability to execute its growth strategy and benefit from the recent pricing actions implemented across key product segments.
