ICICI Direct is bullish on Somany Ceramics has recommended buy rating on the stock with a target price of Rs 410 in its research report dated February 13, 2019.
ICICI Direct's research report on Somany Ceramics
Somany Ceramics’ (Somany) sales volumes grew 8.0% YoY (6.2% QoQ) to 12.77 MSM in Q3FY19 despite credit control measures Topline grew 7.1% YoY to Rs 425.4 crore on account of a strong operational improvement EBITDA margin expanded 150 bps QoQ to 8.2% in Q3FY19 as the company took a price hike across product portfolio in Q3FY19 PAT grew 2x QoQ to Rs 9.2 crore (above our expectation of Rs 8.5 crore) mainly on account of higher-than-expected EBITDA margin.
Outlook
Also, the anticipated improvement in financial performance should narrow down valuation gap between Somany & Kajaria, going ahead. Hence, we maintain our BUY rating, with a target price of Rs 410/share (20x FY20E EPS).
For all recommendations report, click here
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