Cera Sanitaryware (CRS IN) – Management Meet Update – Retail Recovery, Price Hikes and Premiumization – BUY
Published on 11 Jun 2026
We attended CERA Sanitaryware's (CRS) management meet, where the management highlighted sustained recovery in retail demand since Q3FY26 and expects the momentum to continue into Q1FY27 alongside healthy project demand. The company expects to benefit from ongoing disruptions in the Morbi cluster due to labor and infrastructure challenges, enabling market share gains supported by adequate inventory, stronger in-house manufacturing capabilities and stable supply availability. The management reiterated FY27 guidance of ~12% sanitaryware growth, ~18% faucetware growth and EBITDA margin of 13.5%-14%, while indicating that recent price hikes of ~12% in sanitaryware and ~16% in faucetware have been fully absorbed by the market. Growth initiatives remain focused on deeper penetration in existing markets, expansion in underpenetrated states, scaling up premium brand Senator and polymer faucet solutions brand Polypluz, and improving manufacturing efficiencies through higher utilization and lower rejection rates. Overall, the management remains confident of delivering healthy growth, supported by favorable industry dynamics, market share gains, premiumization and distribution expansion initiatives.
We estimate revenue/EBITDA/PAT CAGR of 16.3%/20.9%/24.1% over FY26-28E. Maintained ‘BUY’ rating with TP of INR7,429, based on 30x Mar’28 earnings.
