Cera Sanitaryware's revenue for H1 remained unchanged at Rs 8.9 billion, while EBITDA declined by 11.4% year-on-year. However, the company's PAT saw a slight increase of 1.7% year-on-year to Rs 1.2 billion.

The subdued demand during the first half was due to heatwaves in certain regions, a slowdown linked to general elections in Q1, and prolonged rains in Q2. Input cost pressures contributed to a decline in gross margin to 53.6%, while operating de-leverage resulted in a dip in EBITDA margin to 14.6%.

Anand Rathi maintains a Buy rating on Cera Sanitaryware, projecting a target price of Rs 9,899, reflecting a 40.6x FY27 estimated earnings multiple. The firm anticipates revenue, EBITDA, and PAT CAGRs of 10%, 13%, and 10%, respectively, from FY24 to FY27. Despite the lower growth outlook, Cera's lean balance sheet, with a net cash surplus of Rs 7.9 billion expected in FY24 and a projected surplus of Rs 11.9 billion by FY27, supports the positive rating, even with planned capital expenditures of Rs 1.7 billion.