1
Please refer to important disclosures at the end of this report
1
1
Somany Ceramics Limited (Somany) is a manufacturer and marketer of tiles and
offers a range of sanitary ware and bath fittings. Tile maker Somany is looking
beyond its mainstream business and is aggressively expanding the sanitaryware
portfolio, with an aim to make pan India presence by next year. The company,
which had a turnover of `1,805crore last year, expects the sanitaryware segment
to contribute about `400crore in the overall revenue in the next 3 to 4 years. As
part of the expansion, the company has more than tripled its production capacity
of sanitaryware products from 3.03lakh pieces per annum to up to 11.50lakh
pieces this year at its manufacturing unit in Gujarat. The new segment has
current sales of `70crore and the company expects a sales growth of 40-50 per
cent next year. Currently, sanitaryware and bath fittings together contribute 7.5
per cent of the companys total turnover and in the next three years they want to
take it up to 15 per cent of the overall revenue. The company will use its existing
dealership of tiles business, the private builders, retail touch points and various
government institutions for distribution of sanitaryware products. The Company
has reported a consistent profit growth of 21.6% CAGR and also reported a
healthy return on equity of 18.9% over 5 years. The company has been
maintaining a healthy dividend payout of 17.49%. Hence Buy.
BUY
CMP `767
0.9
Reuters Code
SOCE.BO
2
BSE Sensex
30,659
Nifty
9,526
Face Value (`)
Ceramics Tiles
Market Cap (` cr)
3,249
52 Week High / Low
840/418
Avg. Daily Volume
7,844
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Somany Ceramics
Others | Ceramics Tiles
May 18, 2017
2
Somany Ceramics | Ceramics - Tiles
May 18, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Somany Ceramics
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)