Buy Somany Ceramics, target price Rs 939: ICICI Securities

ICICI Securities has buy call on Somany Ceramics with a target price of Rs 939. The current market price of Somany Ceramics is Rs 682.9.

Somany Ceramics, incorporated in the year 1968, is a Small Cap company (having a market cap of Rs 2905.24 Crore) operating in Building Materials sector.

Somany Ceramics key Products/Revenue Segments include Ceramic Floor & Wall Tiles, Other Operating Revenue, Scrap and Export Incentives for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-06-2023, the company has reported a Consolidated Total Income of Rs 588.90 Crore, down -13.75 % from last quarter Total Income of Rs 682.77 Crore and up 4.58 % from last year same quarter Total Income of Rs 563.10 Crore. Company has reported net profit after tax of Rs 12.57 Crore in latest quarter.

Investment Rationale
The brokerage believes, going forward, the tile industry has margin tailwinds due to lower RM cost and
operating leverage, whereas bathware companies may continue to see healthy revenue growth with steady margins.

Promoter/FII Holdings
Promoters held 54.78 per cent stake in the company as of 30-Jun-2023, while FIIs owned 1.57 per cent, DIIs 21.9 per cent.