ICICI Direct's research report on Somany Ceramics
Somany Ceramics (SCL) is the second largest tiles manufacturers in the domestic tiles market having ~63 MSM capacity (as of Q4) and sanitaryware, faucets capacity of 1.15 million (mn) pieces, 0.65 mn pieces respectively. SCL’s new capacity of 11 MSM (potential to generate ~Rs 250-300 crore worth of additional revenue (at full capacity) to be operational from Q1FY23.
Outlook
Post steep correction (~36% in the last 3 months), we believe gas price uncertainty is largely built in. Thus, we maintain BUY. We value SCL at Rs 780/share at 22x FY24 P/E (vs. Rs 1000 at 26x, earlier) amid gas price uncertainty and as we cut margins estimates.
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.
Copyright © e-Eighteen.com Ltd All rights resderved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.com is prohibited.
Read More
