Somany Ceramics Ltd

Ticker: SOMANYCERA
Decent 68/100

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Investing Reference

Price
458.90
Market Cap
1882.08
Debt/Equity
0.4038
ROE %
7.075
PB
2.1935
Promoter %
55.004
Pledge %
0.000
1Y Rev Growth %
2.003
5Y Rev Growth %
10.453
NP Margin %
2.252
NP Margin 5Y Avg %
3.292

Trading Reference

1M Return %
3.169
6M Return %
9.145
1Y Return %
-29.198
% Away 52W High
60.601
% Away 52W Low
16.104
Daily Volume
10482
Investment Verdict
Hold
Score 65/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 29/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Somany Ceramics Ltd shows potential for growth in the ceramic market, driven by strong demand and expansion strategies.

✅ Positives
  • Strong brand presence in the ceramic industry
  • Increasing demand for home improvement products
  • Expansion into new markets and product lines

⚠️ Negatives
  • High competition in the ceramics sector
  • Volatility in raw material prices
  • Dependence on real estate market trends

Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 31/10/2025

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Business Overview

Somany Ceramics Ltd is a prominent player in the Indian ceramics industry, specializing in high-quality tiles and sanitary ware. Catering to both residential and commercial sectors, the company is known for its innovative designs and sustainable practices. With a commitment to excellence, Somany Ceramics is a trusted choice for builders, architects, and homeowners alike. Their extensive product range and strong distribution network ensure accessibility and reliability in every project.

  • Established leader in the ceramics market
  • Wide range of innovative tile designs
  • Sustainable manufacturing practices
  • Strong distribution network across India
  • Trusted by builders and homeowners
  • Commitment to quality and customer satisfaction

Investment Thesis

Somany Ceramics Ltd stands out due to its strong promoter credibility, which instills confidence in long-term growth. The company's focus on digital services presents a significant growth runway, enhancing customer engagement. Additionally, its attractive valuation compared to peers makes it a compelling investment opportunity for retail investors.

  • Strong promoter group with a proven track record.
  • Significant growth potential in digital services.
  • Attractive valuation relative to industry peers.
  • Robust brand recognition in the ceramics market.
  • Consistent financial performance and growth trajectory.

Opportunity vs Risk

Opportunities
  • Growing demand for home decor
  • Expansion into new markets
  • Strong brand recognition
  • Innovative product launches
  • Rising real estate sector
Risks ⚠️
  • Intense competition in ceramics
  • Volatile raw material prices
  • Economic downturn impact
  • Regulatory changes affecting operations
  • Dependence on housing market

Peer Perspective

Somany Ceramics Ltd trades at a discount to peers like Kajaria Ceramics and Cera Sanitaryware, reflecting concerns over margin stability. A sustained improvement in margins could trigger a rerating, aligning its valuation with industry leaders.

Future Outlook

Somany Ceramics Ltd is well-positioned for growth, driven by increasing demand in the ceramics market. Successful execution of expansion plans and effective cost control will be crucial for maximizing shareholder value.
📊 Stock Investment Checklist (100 Points)
Somany Ceramics Ltd • Updated: 2025-09-18 09:04:49
  • 10
    Business
    High
    Ceramics industry is growing with increasing demand for tiles and sanitary ware.
  • 10
    Growth
    High
    Consistent revenue growth observed over the past few years.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF is fluctuating.
  • 8
    Valuation
    High
    P/E ratio is higher than industry average, indicating potential overvaluation.
  • 7
    Balance
    High
    Moderate debt levels with reasonable liquidity.
  • 6
    Governance
    Good
    Promoter holding is stable, but some pledging exists.
  • 5
    Drivers
    Good
    Growth drivers include expansion plans, but execution risks are present.
  • 5
    Technicals
    Good
    Market sentiment is mixed with low liquidity.
Final Score & Verdict
Score 68 / 100 • Decent
Somany Ceramics Ltd shows potential for growth in a favorable industry, but faces challenges in valuation and execution risks.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 70/100
  • Growth Potential: 65/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


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