Cera Sanitaryware Upgraded to 'Hold' by MarketsMOJO for Strong Management Efficiency and Attractive Valuation

Cera Sanitaryware, a midcap company in the ceramics/marble/granite/sanitaryware industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's high management efficiency, with a ROE of 15.41%, and low debt to equity ratio of 0 times. Additionally, the company has an attractive valuation with a price to book value of 6.9 and is trading at a fair value compared to its historical valuations.
The company also has a high institutional holding of 28.75%, indicating that these investors have the capability and resources to analyze the company's fundamentals. With a market cap of Rs 9,505 crore, Cera Sanitaryware is the second largest company in the sector and makes up 20.12% of the entire industry. Its annual sales of Rs 1,851.49 crore account for 12.26% of the industry.

However, the company has shown poor long-term growth, with net sales growing at an annual rate of 6.69% and operating profit at 8.98% over the last 5 years. In the most recent quarter, the company's profits have fallen by -16.4% and net sales have grown by -6.51%. The stock is also technically in a mildly bearish range, with the technical trend deteriorating since 18-Oct-24 and generating -8.61% returns since then. The MACD and Bollinger Band technical factors are also bearish.

Overall, Cera Sanitaryware has shown below par performance in both the long term and near term, with -19.30% returns in the last year and underperforming the BSE 500 in the last 3 years, 1 year, and 3 months. Based on these factors, MarketsMOJO has upgraded the stock to a 'Hold' recommendation.