Cera Sanitaryware Ltd Falls to 52-Week Low of Rs.4976.6 Amidst Market Downturn

Stock Performance and Market Context

The stock has been under pressure for the past two trading sessions, losing a cumulative 3.61% in returns. On the day it hit the new low, the share price fell by 1.10%, moving in line with the diversified consumer products sector’s performance. Notably, Cera Sanitaryware is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum.

In contrast, the broader Sensex index experienced a negative session, closing down 232.10 points or 0.33% at 82,975.28 after a flat opening. The Sensex remains 3.84% below its 52-week high of 86,159.02 but has also been on a three-week losing streak, shedding 3.25% in that period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying market resilience despite recent weakness.

Long-Term and Recent Returns

Over the past year, Cera Sanitaryware’s stock has delivered a negative return of 27.26%, significantly underperforming the Sensex’s positive 7.61% gain over the same period. The stock’s 52-week high was Rs.7271.4, highlighting the extent of the decline from its peak. This underperformance extends beyond the last year, with the stock lagging the BSE500 index across one-year, three-year, and three-month timeframes.

Financial Metrics and Growth Trends

Cera Sanitaryware’s long-term growth has been modest, with net sales expanding at an annualised rate of 12.47% over the last five years. However, recent quarterly results have reflected some softness. The company reported a PBDIT of Rs.55.10 crore in the latest quarter, marking one of its lowest quarterly earnings. Additionally, the return on capital employed (ROCE) for the half-year period stood at 22.50%, which is comparatively subdued.

The debtor turnover ratio for the half-year was recorded at 7.10 times, indicating a slower collection cycle relative to historical levels. Profitability has also contracted slightly, with profits falling by 2.1% over the past year. These factors collectively contribute to the cautious sentiment surrounding the stock.

Valuation and Efficiency Indicators

Despite the challenges, the company maintains a strong management efficiency profile, reflected in a return on equity (ROE) of 17.11%. The average debt-to-equity ratio remains at zero, underscoring a conservative capital structure with minimal leverage. The stock’s price-to-book value ratio is 4.8, which is considered very attractive relative to its peers’ historical valuations, suggesting that the market is pricing in the current headwinds.

Institutional investors hold a significant stake of 29.37%, indicating confidence from entities with extensive analytical resources. This level of institutional ownership often provides some stability amid market volatility.

Mojo Score and Market Sentiment

The company’s Mojo Score currently stands at 38.0, with a Mojo Grade of Sell, downgraded from Hold on 26 Aug 2025. This reflects a cautious stance based on the company’s recent performance metrics and valuation trends. The market capitalisation grade is 3, indicating a small-cap status with associated liquidity and volatility considerations.

While the stock’s recent price action and fundamental indicators have been under pressure, the broader sector and market environment have also experienced some softness, contributing to the overall sentiment.

Summary of Key Data Points

• New 52-week low: Rs.4976.6 (20 Jan 2026)

• 52-week high: Rs.7271.4

• One-year return: -27.26%

• Sensex one-year return: +7.61%

• ROE: 17.11%

• ROCE (HY): 22.50%

• PBDIT (Q): Rs.55.10 crore

• Debtor turnover ratio (HY): 7.10 times

• Debt to equity ratio (avg): 0

• Price to book value: 4.8

• Institutional holdings: 29.37%

• Mojo Score: 38.0 (Sell, downgraded from Hold)

Conclusion

Cera Sanitaryware Ltd’s stock reaching a 52-week low of Rs.4976.6 highlights the challenges faced by the company in recent periods, reflected in subdued earnings, slower sales growth, and valuation pressures. The stock’s performance has lagged the broader market and sector indices, with key financial ratios indicating some softness in operational metrics. While the company maintains strong management efficiency and a conservative capital structure, the current market pricing reflects the cautious outlook on its near-term prospects.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →