ICICI Direct has given Hold recommendation for Somany Ceramics with a target price of Rs. 730 in its research report issued on Aug 11, 2022

ICICI Direct’s research report on Somany Ceramics

Somany Ceramics (SCL) is the second largest tiles manufacturers in the domestic tiles market having ~73 MSM capacity and sanitaryware, faucets capacity of 1.15 million (mn) pieces and 0.65 mn pieces, respectively. SCL’s new capacity of 11 MSM has potential to generate ~Rs 250-300 crore worth of additional revenue (at full capacity) which will drive FY23 growth.


Gas price uncertainty continues and there remains a risk of further global gas prices spike amid winters (H2) and continued geopolitical tensions. Thus, we downgrade from BUY to HOLD. We value SCL at Rs 730/share at 22x FY24 P/E amid gas price uncertainty and as we cut margins estimates slightly further.

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