ICICI Direct's research report on Somany Ceramics
Somany Ceramics (SCL) is the second largest tiles manufacturer in the domestic tiles market having ~63 MSM capacity and sanitaryware and faucets capacity of 1.15 mn pieces and 0.65 mn pieces, respectively. SCL’s new capacity of 10 MSM (potential to generate ~Rs 250-300 crore worth of additional revenue at full capacity and incremental margin of 100- 150 bps) will come by Q4 end/Q1FY23
Outlook
With strong underlying demand and likely improvement in margins when gas price cools off, we upgrade from HOLD to BUY We value Somany at Rs 1000/share at 26x FY24 P/E..
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
