Cera Sanitaryware Receives 'Buy' Rating from MarketsMOJO, Strong Financial Performance and Bullish Trend Indicate Positive Outlook

Cera Sanitaryware, a leading player in the ceramics and allied industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as a result of the company's high management efficiency, with a ROE of 15.41%, and a low Debt to Equity ratio of 0 times.
The company has also shown strong financial performance, with the highest Operating Cash Flow of Rs 236.05 Cr and the highest Net Sales of Rs 548.80 Cr in the last quarter. This has contributed to the stock's bullish trend, with technical indicators such as MACD, Bollinger Band, KST, DOW, and OBV all pointing towards a positive outlook.

Institutional investors, who have better resources and capabilities to analyze company fundamentals, hold a significant 28.75% stake in Cera Sanitaryware. With a market cap of Rs 12,811 Cr, the company is the second largest in the sector and accounts for 25.31% of the entire industry.

However, there are some risks associated with investing in Cera Sanitaryware. The company has shown poor long-term growth, with Net Sales and Operating Profit growing at a rate of 6.84% and 9.42% respectively over the last 5 years. Additionally, with a ROE of 17.8, the stock is currently trading at an expensive valuation with a Price to Book Value of 9.6.

Despite these risks, the stock has generated a return of 25.54% in the past year, outperforming its industry peers. However, its profits have only risen by 12.7%, resulting in a high PEG ratio of 4.3. Investors should carefully consider these factors before making a decision to invest in Cera Sanitaryware.