Coffee can investing → Cera Sanitaryware ltd

While researching about the stock market, How to make a money in stock market? I came across the lot of strategy to make good portfolio, I went through the portfolio of some of the great investor, But unable to find their strategy , How they pick any stock? Then finally I came across a book called “The Unusual Billionaires ” by Saurabh Mukherjea. He explained the simple but very powerful strategy to make your portfolio bullet proof. The strategy is choose company which

1. delivered revenue growth by 10% year on year
2. ROCE of the company should be grater than 15% for each year
3. and Market capitalization should be grater than 100 cr.

This sounds very simple and you may think that most of the companies would fall under this criteria but the while searching companies I found that this criteria if very difficult to achieve for the companies and only 8 – 10 companies on indian stock exchange fall under this. I took a help of screener.in portal to search companies. I found Cera Sanitaryware fulfills the criteria of coffee can portfolio.

Revenue →

If we see the revenue year on year, it is increased by 10% every year. The revenue of the company is comes from the six segments

1. Sanitary ware
2. Faucet
3. Tiles
4. Modular Kitchen
5. Packaging Unit
6. Polymer Unit

ROCE →

The ROCE for last 10 year is more than 15%.

And current market capitalization on date 04/04/2020 is 2,870 cr.

Competitor for sanitaryware→

Cera sanitaryware is day by day grabbing the market share from its competitor, The two main competitor

1. HSIL
2. Parryware

The HSIL and Cera are the market leader in mid and premium segment(price range from 2000–10000), Parryware is market leader in Luxury segment(10000 above).

Faucet Segment Overview →

Cera entered into faucet business in 2011 with 0.9 mn capicity. Company is day by day reducing outsourcing of faucet. There is lot of competition in this segment.

Competitor →

1. Jaquar
2. HISL
3. Kolher

Tiles Segment Overview →

Cera entered the tile business in FY13 by acquiring a 51% stake in Andhra-based Anjani Tiles. Cera has also aquired more than 51% stake Milo Tiles, Morbi,Gujrat. The company is grabbing the market share from its competitor

1. Kajaria Ceramics
2. Somany Ceramics
3. Prism Johnson

Modular Kitchen Segment Overview →

Company entered modular kitchens market, with the launch of Senator Cucine, in CERA Style Studio in Kochi, in the presence of over 400 trade associates, developers and architects. Senator cucine is made to measure in Italy.

Packaging Segment Overview →

The Joint Venture unit for manufacture of corrugated boxes has now achieved stabilized production. The products are now available on a just in time basis, built to the exacting specifications for the Company. The capacity utilization has increased considerably during the year. CERA holds an equity of 51%.

Polymer Segment →

Your Company has entered into Joint venture for Polymer Products unit for manufacture of seat covers and cisterns with 51% Equity amounting to ` 370 Lakhs.