Prabhudas Lilladher has maintained its 'BUY' rating on Cera Sanitaryware with a target price of ₹7,429 in its research report dated May 09, 2026. According to the brokerage's analysis, the company has demonstrated strong financial performance with doubledigit revenue growth in Q4FY26 and expects similar growth trajectory in coming quarters.
In Q4FY26, Cera Sanitaryware reported EBITDA margin contraction due to higher trade discounts and rising brass costs, as reported by Prabhudas Lilladher. However, the company expects margin stability at 14-15% in FY27 following price hikes implemented during the quarter. The company took price increases of approximately 12% in sanitaryware and 16% in faucetware segments in Q4FY26.
Cera Sanitaryware has provided FY27 revenue growth guidance of 18-20%, primarily driven by 18% growth in Faucetware segment and 12% growth in Sanitaryware, according to Prabhudas Lilladher's report. The growth is expected to be supported by meaningful contribution from the Senator and Polypluz brands, indicating diversified revenue streams across product categories.
Prabhudas Lilladher has upgraded earnings estimates by 5.5% for FY27 and 6.8% for FY28. The brokerage estimates revenue/EBITDA/PAT CAGR of 16.3%/20.9%/24.1% over FY26-28E period. The target price of ₹7,429 is based on 30x March 2028 earnings, reflecting the brokerage's positive outlook on the company's growth prospects.
