Equirus Securities has an add call on Somany Ceramics with a target price of Rs 789.

The current market price of Somany Ceramics is Rs 689.75.

Time period given by the brokerage firm is 17 months when Somany Ceramics price can reach defined target.

"Somany Ceramics saw a revenue de-growth of 8 per cent yoy amid a challenging environment marked by subdued real estate activity and slower-than-expected dealer-level restocking post GST rate cut. Sales volumes were up 6 per cent yoy led by higher outsourcing. We expect realization pressure in GVT segment to continue over next few quarters due to increased competition from Morbi players, and accordingly pare our FY18E/FY19E EBITDA estimates by 14 per cent/17 per cent respectively. We maintain our ADD rating on the stock with June 2019 TP at Rs 789 (vs. March 2019 TP of Rs 910 earlier) based on a 30x PE on TTM EPS of Rs 26.3 but downgrade our relative rating to Benchmark from Overweight," Equirus Securities said in a report.