If You Invested In Cera Sanitaryware Instead Of That Floor Upscale Last Year, Here's How Much You'd Have Today

Shares of Cera Sanitaryware, have rallied over 20% in the past month.

Today (May 23), the stock surged over 4% to hit a new 52-week high of ₹7,847.50. Shares of the tiles maker have been upbeat since the company posted its earnings for the quarter ended March on May 10.

The home solutions provider’s revenue from operations jumped 30% year-over-year to ₹532.5 crore. Profits for the review quarter stood at ₹62.8 crore up close to 20% from the year ago-period. The company also announced a ₹50/share dividend for the year ended March 2023.

So, with the surge backed by these strong numbers, here’s what would have happened if you bought Cera Sanitaryware shares instead of its tiles last year.

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If you upgraded your house’s flooring last year, you might have looked at Cera tiles, which range between ₹40 to ₹100 per square foot or even higher, depending on the designs, material, and other specifications. For the purpose of this article, let’s take a base price of ₹50 per square foot. The average size of an Indian house is around 800-1,000 square feet. We’ll take 900 square feet as the base for our calculation, meaning the upgrade would have cost you ₹45,000.

Now, let’s imagine that instead of upgrading your floor, you decided to invest that ₹45,000 in Cera Sanitaryware shares on May 23, 2022, when the stock closed at ₹4,052.96. In that case, you would have bought approximately 11 shares of the company. Today, with the stock’s impressive rally, those 11 shares would be valued at over ₹86,000, giving you a return of more than 91% on your initial investment.

Price Action: Cera Sanitaryware’s share price was up 3.86% to trade at ₹7,772 in the mid-market hours of trading on Tuesday.

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Disclaimer: Benzinga India doesn't give financial advice. The above article is for educational purposes alone.

Editor's Note: Artificial intelligence was used as a secondary aid in the writing of this story.