Look at Somany Ceramics, says Arun Baid

Arun Baid, Vice President-Research at Religare Capital Markets told CNBC-TV18, "Somany Ceramics is the third largest organised guy in our country in tile segments. Tile market is about Rs 24,000 crore and of which about Rs 12,000 is organised market. So, what we have seen is this segment is going to be much better off compared to most other segments in that particular area for a simple reason is that tiles are going to be used when that construction is being done. Whether the property is sold or not is a separate issue altogether but when you are doing construction you are going to use tiles for sure.""Somany has a huge presence in tier II, tier III cities. So, what we observed even in the slowdown is that tier II, tier III the small retailers are still buying. They are doing their work on their housing and that is leading to growth in this company.""Another growth area which can happen for across tile market is your refurbishment of houses. So, that is a big potential area in our country and I do believe that will pick up over a period of time. So, that will also help the company going ahead," he added."Exports have been doing well for the entire industry in case of tiles, not just for Somany but generally for the industry and that has been a general growth avenue for this industry. Another thing which Somany is doing is it has got into sanitary ware markets. So, the market is similar to tiles and that is going to be another growth avenue for the company. So, we do like Somany because of these aspects," he said.