Motilal Oswal has issued a buy rating on Cera Sanitaryware with a target price of ₹5990 in its research report dated April 02, 2026. According to the brokerage's analysis, the company demonstrated healthy 11% revenue growth in 3Q following a <5% growth since 2HFY24, indicating a significant improvement in business momentum. The target price is based on 25x FY28E P/E valuation, with the stock appearing attractive at approximately 19x FY28E P/E after a ~15% correction from its February 2026 high.
As reported by Motilal Oswal, the company is expected to deliver strong growth metrics with 11%/23%/20% CAGR in revenue/EBITDA/PAT over FY26E-28 period. The brokerage maintains its earnings estimates intact and anticipates EBITDA margin recovery toward 16% as one-off cost factors disappear in the coming period. Management remains optimistic about reporting double-digit growth in FY27 with gradual margin expansion, supported by sufficient gas supply from Gail (100%) and Sabarmati (80%).
According to the research report, Cera Sanitaryware maintains a high cash surplus of approximately ₹10 billion likely in FY28, providing financial flexibility to navigate challenging market conditions. The company's production remains unaffected, with management expressing optimism about sustained demand momentum. After the recent correction, the stock appears attractive at current valuations, prompting the brokerage to upgrade its rating to buy with the revised target price of ₹5990.
