Cera sanitaryware Ltd is engaged in manufacturing, marketing and distribution of sanitaryware, faucetware and trading in tiles and other bathroom products. CERA is positioned amongst Top-3 organized players in sanitaryware market owing to its presence across product segments at various price points and unique designs. The Company has more than 3,600 dealers and 12000+ retailtouchpoints.
Right outsourcing mix: CERA has been able to strike a prudent balance between in-house manufacturing and outsourcing. This strategy helps company to be asset light and improves overall return ratios like ROE/ROCE.
Use of high tech in manufacturing: Cera has been an innovator in the use of technology and automation in design and process. The company has indigenously developed robotic glazing machines which results in better spread of glaze while reducing wastage and dependence on labour. It has also developed 3D printing which allows reduction in SKUs since the mould is designed very fast and focus is on production on faster selling products.
Recovery in Real Estate: Cera is best-positioned to ride on real estate recovery due to focus on product positioning, brand-building. Recently housing demand has surged, resulting in growth opportunities for the Cera.
Outlook & Valuation
Cera is likely to see the healthy traction in the coming times due to strong product portfolio at a varied price points, robust distribution network, rising brand awareness in Tier-II and Tier-III cities, Imminent recovery in individual house building and thrust on low-cost housing projects, cost savings initiatives and strong balance sheet with consistent free cashflow generation