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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Somany Ceramics Ltd

About the Company - Somany Ceramics Ltd

Somany Ceramics Ltd. is a Public Limited Listed company incorporated on 20/01/1968 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L40200WB1968PLC224116 and registration number is 005169. Currently Company is involved in the business activities of Manufacture of other clay building materials. Company’s Total Operating Revenue is Rs. 2073.80 Cr. and Equity Capital is Rs. 8.48 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Ceramics/Tiles/Sanitaryware2, Red Cross Place, Kolkata West Bengal 700001sclinvestors@somanyceramics.com
http://www.somanyceramics.com
Management
NamePosition Held
Mr. Shreekant SomanyChairman & Managing Director
Mr. Abhishek SomanyManaging Director
Mr. Ghanshyam Girdharbhai TrivediNon Exe.Non Ind.Director
Mr. Salil SinghalIndependent Director
Mr. Vineet AgarwalIndependent Director
Mr. Ravinder NathIndependent Director
Mr. Siddharath BindraIndependent Director
Mr. Rameshwar Singh ThakurIndependent Director
Mrs. Rumjhum ChatterjeeIndependent Director

Somany Ceramics Ltd. Share Price Update

Share PriceValue
Today₹699.50
Previous Day₹693.50

Basic Stock Data of Somany Ceramics Ltd

Market Cap 2,879 Cr.
Current Price 678
High / Low819/466
Stock P/E31.6
Book Value 193
Dividend Yield0.44 %
ROCE9.37 %
ROE8.57 %
Face Value 2.00

Data Source: screener.in

Competitors of Somany Ceramics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Murudeshwar Ceramics Ltd 328 Cr. 56.971.9/27.049.4 60.40.88 %4.66 %1.92 % 10.0
Orient Bell Ltd 567 Cr. 390649/349240 2130.26 %10.4 %7.53 % 10.0
Nitco Ltd 463 Cr. 64.464.4/16.4 57.60.00 %11.2 %% 10.0
Industry Average452.67 Cr170.4396.47110.330.38%8.75%3.15%10

Somany Ceramics Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales424493565330561587617559618622679587655
Expenses374429475307493522566514576582618536591
Operating Profit49638923686551454241615164
OPM %12%13%16%7%12%11%8%8%7%7%9%9%10%
Other Income43-1564314144-44
Interest1099887671012121111
Depreciation15151615161617151717191718
Profit before tax2942496484429261616341839
Tax %26%26%28%37%27%23%28%26%29%28%29%32%25%
Net Profit2131353353421191211241330
EPS in Rs4.846.617.261.058.257.594.044.843.462.815.733.436.90

Somany Ceramics Ltd Quarterly Chart

Somany Ceramics Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8691,0431,2511,5251,6851,7311,7131,7151,6101,6512,0952,4792,543
Expenses7949571,1691,4171,5411,4971,5231,5501,4771,4601,8882,2902,327
Operating Profit758682108144234189165133191207189216
OPM %9%8%7%7%9%14%11%10%8%12%10%8%8%
Other Income1237413105-15-713137
Interest21201921223940464940304046
Depreciation18202227283141445962646870
Profit before tax364844689717711880108312693108
Tax %31%32%39%33%32%35%33%34%-104%27%26%28%
Net Profit253228476811579532061936778
EPS in Rs7.289.287.4311.9415.2723.1616.6210.933.5413.4520.8816.8318.87
Dividend Payout %11%13%20%17%15%12%16%18%57%18%14%18%

Somany Ceramics Ltd Profit & Loss Yearly Chart

Somany Ceramics Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:8%
3 Years:15%
TTM:5%
Compounded Profit Growth
10 Years:7%
5 Years:-3%
3 Years:27%
TTM:50%
Stock Price CAGR
10 Years:18%
5 Years:15%
3 Years:23%
1 Year:33%
Return on Equity
10 Years:12%
5 Years:9%
3 Years:11%
Last Year:9%

Somany Ceramics Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital7788888888888
Reserves119146216250420516572605598632718778811
Borrowings167162171191243497541574529460512534371
Other Liabilities237306353335372422518477416452550682788
Total Liabilities5296217477841,0441,4431,6391,6641,5521,5541,7882,0031,979
Fixed Assets1912002412643815276487137787597521,015968
CWIP393165628256922747147
Investments595547108119114683490603215
Other Assets330403449473549741849859734696749908848
Total Assets5296217477841,0441,4431,6391,6641,5521,5541,7882,0031,979

Somany Ceramics Ltd Reserves and Borrowings Chart

Somany Ceramics Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 797174256011711186153356143165
Cash from Investing Activity -35-40-104-38-192-131-110-89-15-90-255-91
Cash from Financing Activity -37-2839-613110-1027-153-13964-21
Net Cash Flow649-19-1-4-924-15128-4952

Somany Ceramics Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days5961636269901078963494140
Inventory Days7671445550114148142200125119147
Days Payable85958784728413311310594114141
Cash Conversion Cycle5137203346119123118158804745
Working Capital Days383122313980899189553731
ROCE %20%22%17%20%21%24%14%11%7%12%12%9%

Somany Ceramics Ltd Financial Efficiency Indicators Chart

Somany Ceramics Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Jan 2024
Promoters54.77%54.77%54.77%54.78%54.78%54.79%54.79%54.79%54.79%54.79%54.79%55.01%
FIIs3.48%2.85%2.48%2.51%2.43%2.27%1.74%1.38%1.57%1.45%1.43%1.43%
DIIs19.16%19.75%20.04%20.20%20.44%20.80%21.50%22.02%21.92%23.65%23.26%23.33%
Public22.59%22.63%22.71%22.50%22.34%22.13%21.98%21.81%21.72%20.11%20.53%20.21%
No. of Shareholders18,99718,62622,21024,76825,45026,01028,17430,52428,00225,35745,77629,669

Somany Ceramics Ltd Shareholding Pattern Chart

No. of Somany Ceramics Ltd Shareholders

Somany Ceramics Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Small Cap Fund - Regular Plan28335061.44203.22
HSBC Small Cap Fund - Regular Plan15097110.82108.28
Franklin India Focused Equity Fund14120470.97101.27
Nippon India Value Fund7991490.8457.32
Aditya Birla Sun Life Multi-Cap Fund4072110.5929.21
HSBC Value Fund3653000.2426.2
Nippon India Flexi Cap Fund3500000.4425.1
Franklin Build India Fund3280121.2523.53
Aditya Birla Sun Life Multi Asset Allocation Fund2564520.6218.39
Franklin India Opportunities Fund2126380.7115.25

Somany Ceramics Ltd ROCE Trend

Somany Ceramics Ltd EPS Trend

Somany Ceramics Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)16.8320.8813.623.5410.93
Diluted EPS (Rs.)16.8320.8813.623.5410.93
Cash EPS (Rs.)31.7337.0528.9318.5123.01
Book Value[Excl.RevalReserv]/Share (Rs.)210.61196.34178.16165.30165.79
Book Value[Incl.RevalReserv]/Share (Rs.)210.61196.34178.16165.30165.79
Revenue From Operations / Share (Rs.)583.53493.12389.45379.92404.69
PBDIT / Share (Rs.)47.8551.7948.0334.0143.07
PBIT / Share (Rs.)31.8836.7333.5520.1032.62
PBT / Share (Rs.)21.8629.7519.742.2618.90
Net Profit / Share (Rs.)15.7521.9914.464.6012.57
NP After MI And SOA / Share (Rs.)16.8320.8813.623.5410.93
PBDIT Margin (%)8.2010.5012.338.9510.64
PBIT Margin (%)5.467.448.615.298.06
PBT Margin (%)3.746.035.060.594.67
Net Profit Margin (%)2.694.463.711.213.10
NP After MI And SOA Margin (%)2.884.233.490.932.70
Return on Networth / Equity (%)9.0812.218.802.477.55
Return on Capital Employeed (%)11.3013.9613.988.5113.43
Return On Assets (%)3.554.943.680.962.77
Long Term Debt / Equity (X)0.230.240.230.320.38
Total Debt / Equity (X)0.620.700.550.730.83
Asset Turnover Ratio (%)1.501.431.181.131.16
Current Ratio (X)1.111.161.411.351.41
Quick Ratio (X)0.620.750.960.751.02
Inventory Turnover Ratio (X)1.231.210.750.860.96
Dividend Payout Ratio (NP) (%)17.820.0017.62112.9924.70
Dividend Payout Ratio (CP) (%)9.140.008.5422.9212.63
Earning Retention Ratio (%)82.180.0082.38-12.9975.30
Cash Earning Retention Ratio (%)90.860.0091.4677.0887.37
Interest Coverage Ratio (X)5.047.425.082.923.97
Interest Coverage Ratio (Post Tax) (X)2.714.152.991.922.43
Enterprise Value (Cr.)2515.823221.072115.32904.742347.31
EV / Net Operating Revenue (X)1.011.541.280.561.37
EV / EBITDA (X)12.3814.6410.396.2812.86
MarketCap / Net Operating Revenue (X)0.831.311.090.231.04
Retention Ratios (%)82.170.0082.37-12.9975.29
Price / BV (X)2.643.792.750.632.92
Price / Net Operating Revenue (X)0.831.311.090.231.04
EarningsYield0.030.030.030.030.02

Somany Ceramics Ltd Profitability Ratios (%)

Somany Ceramics Ltd Liquidity Ratios

Somany Ceramics Ltd Liquidity Ratios (%)

Somany Ceramics Ltd Interest Coverage Ratios (X)

Somany Ceramics Ltd Valuation Ratios

Fair Value / Intrinsic Value of Somany Ceramics Ltd

Fair Value: ₹524.97

The stock is overvalued by 22.57% compared to the current price ₹678

*Investments are subject to market risks

Strength and Weakness of Somany Ceramics Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.75%, which is a positive sign.
  2. The company has higher reserves (490.85 cr) compared to borrowings (380.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (68.00 cr) and profit (83.69 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 30.98 and average Dividend Yield of 6.97%.
  2. The stock has a high average Working Capital Days of 52.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 73.08, which may not be favorable.

Should I Buy Somany Ceramics Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Somany Ceramics Ltd:
    1. Net Profit Margin: 2.69%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.30% (Industry Average ROCE: 8.75%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 2.71
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.62
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 31.2 (Industry average Stock P/E: 95.27)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.62
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Somany Ceramics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE