Vijay Kedia portfolio stock: This beaten down sanitaryware share gets a buy rating on pick up in residential housing market; check target prices

Amid pick-up in the residential housing market and from home improvement market, brokerage firm ICICI Securities remain bullish on the stock catering to sanitaryware industry can surge. Ace investor Vijay Kedia too holds a stake in this sanitary ware company.  

For the quarter ending March 2022, the celebrity investor holds 130,507 shares of Cera Sanitaryware, amounting to one per cent stake in the company. It is one of the two stocks that Kedia added in the recently concluded quarter. Apart from Cera Sanitaryware, the ace investor bought 1,440,000 shares of Affordable Robotic & Automation. This amounts to a 14.2% stake in the industrial equipment maker's firm.  

As per the latest corporate filings, Kedia publicly holds 15 stocks, the value of which has been pegged at over Rs 397.5 crore as on June 21, in the quarter ended March. 

Meanwhile, as on June 20, shares of Cera Sanitaryware have been trading at a 37% discount from their 52-week high value of Rs 6,430.45. The stock touched a year low of Rs 3,518.60 on May 10 this year.  

Saying the demand environment remains healthy, ICICI Securities maintained a buy rating with a target price of Rs 5,592. On Monday's closing price of Rs 4042, an upside of 38% is seen in the stock in one year.  

Cera Sanitaryware has a strong net-cash balance sheet with healthy growth prospects led by an uptick in housing market and increased demand from home improvement market, it said.  

"We continue to like the company for its comprehensive product portfolio, wide distribution reach and strong brand presence," the brokerage added.  

The company had reported a 6.5% YoY decline in Q4FY22 consolidated revenue to Rs 4.1bn owing to the divestment of its stake in Anjani Tiles and application of Ind AS-105.  

Earlier, post q4 results, BoB Capital had said the company is in a sweet spot as it continues to witness growth in its bathroom solutions segment aided by market share gains across the portfolio amid a sizeable shift from the unorganised to organised sector and demand pickup in the housing sector.  

In its report on May 11, the brokerage maintained a buy rating with an upgraded target price of Rs 5,715 (earlier Rs 5,590), an upside of 41% on yesterday's closing price.