Somany Ceramics jumps 17% as management guides industry-beating growth in FY25

Over the past year, shares of the company have gained around 30 percent in trade.

Somany Ceramics shares surged 17 percent in trade on May 16 after the company reported a 27 percent jump in net profit for the three months ended March.

Total sales grew 8.3 percent to Rs 731.81 crore during the quarter, compared to Rs 675.46 crore in same quarter of the previous year.

At 12.15 pm, Somany Ceramics stock price was higher by 15.8 percent at Rs 719.3 on the NSE.

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Somany’s tile volume grew seven percent YoY and 20 percent QoQ. The rise in volumes came despite demand for tiles remaining sluggish during the quarter on account of continued slowdown in home improvement activity and increased competitive intensity.

The firm's management remains optimistic on recovery in the second half of FY25 on the back of demand tailwinds in the real estate sector, aggressive distribution expansion in smaller cities, and Morbi players’ focus on exports.

Furthermore, on the sanitaryware and faucet business too, management expects double-digit growth.

Over the last few quarters, despite a challenging demand scenario, SOMC has been continuously working on improving balance sheet strength and has bought down working capital days to merely 8 days from 31 in FY23, said Nuvama Institutional Equities.

The brokerage increased its target price to Rs 914, up from Rs 907 earlier, while maintaining its buy rating. ICICI Securities also kept its buy rating steady at Rs 916 apiece.

Over the past year, shares of the company have gained around 30 percent in trade. In comparison, the frontline index Nifty 50 has risen around 22 percent during the same time.

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