Tuesday, October 1, 2013

Cera Sanitaryware - A Safe Investment

I know I have been very late in suggesting this stock, but the stocks seems to follow "its never too late" strategy in investment.
You won't believe that when I was first told about this script, it was trading around 205. I still remember that, as me and one of my friend were tracking it and it went 7-10% up on that same day to levels of 230 or so. We both were like, let's wait for some correction in the script, and then we will invest. I think this was about 14-15 months back, and then we both seriously dont know, when this stock reached 500, as we just kept on waiting and watching.
It is definitely not one of those which will prove to be a multibagger, but definitely it can give you decent returns on your investment. (Far better returns than investing in banks. :-))

I can't think of any other company right now, where the growth has been so steady and so consistent. Each of our company had atleast 1 year, where the linear pattern of growth is affected, but this is an exception.
It has been growing at a steady pace with growth(%) increasing every year.
The growth in past 5 years is 20% -> 27% -> 32% -> 52% (From 2008-09 to 2012-13)

Recently I visited Amanora Town Center in Pune, which is considered one of the largest malls in Pune. The entire mall had Cera products fitted in the rest rooms. When such a reputed mall uses certain products, definitely many other small and large malls coming up sooner or later will get inspired. This is what I believe. :-)

I also found this in report from Angel Broking which further grows our confidence in the company:
"CSL has expanded its capacity of sanitaryware unit from 2.0mn pieces per annum (p.a.) to 2.7mn pieces p.a. in FY2013 and is planning to expand it further to 3mn pieces p.a. in FY2014. The expansion will thus enable CSL to en-cash on the opportunity emerging from the consistently growing sanitaryware demand owing to factors like urbanization, rising standard of living, changing lifestyle, growing construction activities etc. Simultaneously, high brand visibility, due to consistent marketing efforts (marketing cost has grown at 46.3% CAGR over FY2008-13), is expected to further boost revenue growth going forward."

Stock Price Estimates:
The stock is slightly expensive at this moment, but still looks a good buy. More than the current performance, the stock is more trading at this price, because of speculations regarding the bright future of the company. As I said, it may not become multi-bagger from these levels, but definitely can give you good returns in long term.


  1. Showed a good move today itself.... many of you might not have even seen this post yet... :-D

  2. Was going through some of our previous investments that gave us good returns. After going through those, I asked myself, that can Wimplast still prove to be a multibagger from these levels?
    Definitely something, I will look into deeply.
    About 1 year ago, I sold this stock, when it was around 300, as my buying price was close to 150.
    But the fundamentals of the company are still looking good. Linear growth in both revenues and net profit for last 5 years, zero debt, promoters completed 75% acquisition, about 15 months back, what more do you want?

  3. Ajanta Pharma promoters still interested in buying at these levels...

    Is that an indication of something good coming in the results this quarter, which is just 20 days away approx???

  4. Cera has shown tremendous outperformance...
    Stock has already appreciated about 20% in last 5 days or so.....

    Granules also has been in some uptrend since 140 levels...
    I dont understand technical charts much, but they say that, it is necessary for stock to close above 154 levels for big uptrend...
    All the best!!!!!

  5. Hello good morning,
    Impact of telangana formation on granules?
    As founder is from nonT region.

  6. Very good news for Indian markets:
    It might also help Rs to recover to about 58-60 levels in medium term....

  7. Hi Vivek,
    I have got no idea about that, but will try to find out.
    But as far as I know, this issues should not affect organizations like Granules India, as they figure out the way out of such situations, if at all, there are any....
    Or even if there are some issues affecting, it wont last long.... so we should not be afraid, unless there is some news specifically on the company...
    Will keep you updated if I find any news on it....


  8. Good going by Thangamayil since yesterday....
    Dont know the reason behind it yet, as the only news I got was that results are on 28th Oct... :-)
    For Granules, its important that stock respects the support of 154, if it does, we can see a big jump up anytime...

  9. Also not to forget Dewan Housing, who has been in tremendous run up since the levels of 106, about 5 days back....

  10. Capri Global Capital Ltd. now out of Periodic Call Auction (PCA) segment...
    We will surely see more volumes on the counter now...
    A smart move from promoters helped the cause..

  11. Good to see some experts promising newer highs on Ajanta Pharma...

  12. Congratulations to all the investors of Suven Life Science....
    You have got your money more than doubled....
    Lets wait for Q2 results and see if numbers justifies the price or not...

  13. A word from Granules Management:
    "There hasn’t been a material impact due to the recent flare-up of the Telegana issue.
    Due to a major pharma conference in Frankfurt, CPhI Worldwide, we’ll be releasing our earnings on October 30th."

  14. Good show put up by Dewan Housing ahead of its numbers on Monday...
    Not sure, but seems like Rakesh Jhunjhunwala bought about 25 Lakh shares of Dewan Housing through a block deal today...
    Will confirm later...

  15. Rakesh Jhunjhunwala buys 2% stake in Dewan Housing Finance
    Link: http://www.moneycontrol.com/news/buzzing-stocks/rakesh-jhunjhunwala-buys-2-stakedewan-housing-finance_972736.html

  16. […] time about Cera, I gave a very conservative target predicting the difficult times ahead, here: http://fundamentalstockideas.in/cera-sanitaryware-a-safe-investment/ I stick to that same target for now, and will be upgrading further, if company continues to […]

  17. Thanks for suggesting this stock Cera Sanitaryware for investment.