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Last Updated : May 29, 2019 10:00 PM IST | Source: Moneycontrol.com

Buy Somany Ceramics; target of Rs 475: ICICI Direct

ICICI Direct is bullish on Somany Ceramics has recommended buy rating on the stock with a target price of Rs 475 in its research report dated May 23, 2019.

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ICICI Direct's research report on Somany Ceramics


Somany Ceramics (Somany) reported 3.3% volume de-growth YoY (grew 20.3% QoQ) to 15.4 MSM in Q4FY19. Topline de-grew 4.1% YoY to Rs 518.8 crore on account of a higher base. EBITDA margins expanded 210 bps YoY to 13.6% in Q4FY19. PAT de-grew 16.9% YoY to Rs 24.1 crore on account of exceptional item worth Rs 12.7 crore (on account of Rs 15.9 crore defalcation committed by an employee). Adjusted PAT grew 26.9% YoY to Rs 36.8 crore.


Outlook


Somany has become structurally strong with credit control measures taken in FY19. Additional value-added capacities & stress in Morbi cluster could not only lead Somany to clock double-digit growth in FY20E but could also lead to PAT growth of 40.8% CAGR to Rs 91.9 crore in FY19-21E. We maintain BUY recommendation on the stock with a target price of Rs 475/share.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




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First Published on May 29, 2019 10:00 pm
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