Cera Sanitaryware - Q4 FY'14 Result Updates

Financial Results for March 31, 2014
Link: Click Here

Board recommends Dividend:
Cera Sanitaryware Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 25, 2014, inter alia, has transacted the following:
-Recommended a dividend of Rs. 5/- (100%) per fully paid-up equity Share of Rs. 5/ each.
-Re-appointed Shri Vikram Somany as Chairman and Managing Director for a period of 3 years w.e.f. July 01, 2014.

Results Press Release
Link: Click Here

The growth shown by Cera Sanitaryware is almost unbelievable, considering the sector it operates it.
Commenting on above statement, Vikram Somany, CMD, Cera Sanitaryware, said that "Cera has once again demonstrated that it enjoys overwhelming customers' preference and support. This is evident from the fact that our growth has been achieved in spite of market witnessing signs of slow down".

According to Business Line, Cera has maintained key position in the country’s sanitaryware market, which has a total size of Rs 2,700 crore with a market share of 23% from 18% earlier.
According to management, after success on market acceptability with Sanitaryware and faucets, Cera has now forayed into tiles more aggressively. The company offers tiles consist of HD digital wall tiles with matching floor tiles and also digital polished glazed vitrified tiles.
Broking houses see promising future for the company. An Angel Broking report on Cera after the results announcement said, “Considering the low-penetration level of sanitation in India, change in lifestyle of the people, increasing nuclear families and real estate growth; the sanitaryware industry growth is on an uptrend. Thus, with increasing awareness about the brand ‘Cera’ and its recently expanded capacity, Cera is well placed to benefit from the growth in the sanitaryware industry.” 

Talking about numbers,

For Q4 FY'14,
Revenues stood at 218.19 Cr Vs 154.56 Cr YoY, a growth of 41%.
Net Profit stood at 19.34 Cr Vs 13.93 Cr YoY, a growth of 39%.
EPS at 15.28 Vs 11.01.

For the full year FY'14 against FY'13,
Revenues stood at 663.69 Cr Vs 487.87 Cr, a growth of  36%.
Net Profit stood at 51.91 Cr Vs 46.21 Cr, a growth of 12%.
EPS at 41.02 Vs 36.51.

My Views:
Sales growth of more than 40% in a sector, where other major companies are struggling to show positive growth, is a big achievement. The net profit this quarter is highly satisfactory, unlike last quarter, where it showed a decline, compared to previous year. With EPS of 41, the stock is trading at a P/E multiple of 21, which is higher than industry P/E. But the way, company is growing, it definitely deserves whatever the markets has to offer.
In the notes section of result, the company has mentioned that "As part of Green Initiative, the company has decided to install Solar Power Energy at Kadi for Captive use." Good to see that company is also concerned about the environment. Its a matter of pride being a shareholder of such a company.
Despite being an expensive stock, I would recommend a hold at current market price, for long term.
Investors with good patience and longer term view, can even make fresh entry at current levels, and use every dips to buy more.
Not changing my initial recommended target of 1000 Rs for now.