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Last Updated on: 25 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Somany Ceramics Ltd

Basic Stock Data

Last Updated: June 14, 2024, 9:39 am

Market Cap 2,989 Cr.
Current Price 729
High / Low819/561
Stock P/E30.4
Book Value 176
Dividend Yield0.41 %
ROCE14.5 %
ROE13.0 %
Face Value 2.00
PEG Ratio0.66

Competitors of Somany Ceramics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Lexus Granito (India) Ltd 79.1 Cr. 39.261.3/31.6 4.620.00 %13.5 %109 % 10.0
Kajaria Ceramics Ltd 22,373 Cr. 1,4051,524/1,11053.0 1640.64 %21.4 %17.1 % 1.00
Nitco Ltd 577 Cr. 80.382.2/16.8 71.30.00 %12.1 %% 10.0
Murudeshwar Ceramics Ltd 317 Cr. 52.471.9/38.361.8 60.20.95 %4.77 %1.44 % 10.0
Orient Bell Ltd 523 Cr. 359553/301569 2150.28 %0.91 %0.30 % 10.0
Industry Average4,374.18 Cr470.15120.80107.850.35%11.60%24.24%7.17

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales565330561587617559618622679587655612738
Expenses475307493522566514576582618536591553658
Operating Profit89236865514542416151645979
OPM %16%7%12%11%8%8%7%7%9%9%10%10%11%
Other Income-1564314144-4445
Interest98876710121211111113
Depreciation16151616171517171917181919
Profit before tax4964844292616163418393352
Tax %28%37%27%23%28%26%29%28%29%32%25%30%34%
Net Profit3533534211912112413302334
EPS in Rs7.261.058.257.594.044.843.462.815.733.436.905.227.51

Last Updated: June 10, 2024, 6:01 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 25, 2024, 8:54 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,0431,2511,5251,6851,7311,7131,7151,6101,6512,0952,4792,591
Expenses9571,1691,4171,5411,4971,5231,5501,4771,4601,8882,2902,338
Operating Profit8682108144234189165133191207189253
OPM %8%7%7%9%14%11%10%8%12%10%8%10%
Other Income237413105-15-713139
Interest201921223940464940304046
Depreciation202227283141445962646873
Profit before tax4844689717711880108312693143
Tax %32%39%33%32%35%33%34%-104%27%26%28%30%
Net Profit3228476811579532061936799
EPS in Rs9.287.4311.9415.2723.1616.6210.933.5413.4520.8816.8323.63
Dividend Payout %13%20%17%15%12%16%18%57%18%14%18%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-12.50%67.86%44.68%69.12%-31.30%-32.91%-62.26%205.00%52.46%-27.96%47.76%
Change in YoY Net Profit Growth (%)0.00%80.36%-23.18%24.44%-100.42%-1.61%-29.35%267.26%-152.54%-80.42%75.72%

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:14%
5 Years:8%
3 Years:13%
1 Year:21%
Return on Equity
10 Years:12%
5 Years:9%
3 Years:11%
Last Year:9%

Last Updated: April 13, 2024, 9:22 am

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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-76.00-89.00-83.00-99.00-263.00-352.00-409.00-396.00-269.00-305.00-345.00-125.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%1.32%
DIIs19.16%19.75%20.04%20.20%20.44%20.80%21.50%22.02%21.92%23.65%23.26%23.82%
Public22.59%22.63%22.71%22.50%22.34%22.13%21.98%21.81%21.72%20.11%20.53%19.83%
No. of Shareholders18,99718,62622,21024,76825,45026,01028,17430,52428,00225,35745,77628,929

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Small Cap Fund - Regular Plan2,833,5061.44203.22407,2112024-06-20595.83%
HSBC Small Cap Fund - Regular Plan1,509,7110.82108.28407,2112024-06-20270.74%
Franklin India Focused Equity Fund1,412,0470.97101.27407,2112024-06-20246.76%
Nippon India Value Fund799,1490.8457.32407,2112024-06-2096.25%
Aditya Birla Sun Life Multi-Cap Fund407,2110.5929.21407,2112024-06-200%
HSBC Value Fund365,3000.2426.2407,2112024-06-20-10.29%
Nippon India Flexi Cap Fund350,0000.4425.1407,2112024-06-20-14.05%
Franklin Build India Fund328,0121.2523.53407,2112024-06-20-19.45%
Aditya Birla Sun Life Multi Asset Allocation Fund256,4520.6218.39407,2112024-06-20-37.02%
Franklin India Opportunities Fund212,6380.7115.25407,2112024-06-20-47.78%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)23.0116.8320.8813.623.54
Diluted EPS (Rs.)22.9816.8320.8813.623.54
Cash EPS (Rs.)41.9231.7337.0528.9318.51
Book Value[Excl.RevalReserv]/Share (Rs.)203.16210.61196.34178.16165.30
Book Value[Incl.RevalReserv]/Share (Rs.)203.16210.61196.34178.16165.30
Revenue From Operations / Share (Rs.)632.04583.53493.12389.45379.92
PBDIT / Share (Rs.)64.3547.8551.7948.0334.01
PBIT / Share (Rs.)46.6631.8836.7333.5520.10
PBT / Share (Rs.)34.8321.8629.7519.742.26
Net Profit / Share (Rs.)24.2415.7521.9914.464.60
NP After MI And SOA / Share (Rs.)23.6316.8320.8813.623.54
PBDIT Margin (%)10.188.2010.5012.338.95
PBIT Margin (%)7.385.467.448.615.29
PBT Margin (%)5.513.746.035.060.59
Net Profit Margin (%)3.832.694.463.711.21
NP After MI And SOA Margin (%)3.732.884.233.490.93
Return on Networth / Equity (%)13.459.0812.218.802.47
Return on Capital Employeed (%)16.7511.3013.9613.988.51
Return On Assets (%)4.883.554.943.680.96
Long Term Debt / Equity (X)0.250.230.240.230.32
Total Debt / Equity (X)0.460.620.700.550.73
Asset Turnover Ratio (%)1.301.501.431.181.13
Current Ratio (X)0.971.111.161.411.35
Quick Ratio (X)0.560.620.750.960.75
Inventory Turnover Ratio (X)1.471.231.210.750.86
Dividend Payout Ratio (NP) (%)0.0017.820.0017.62112.99
Dividend Payout Ratio (CP) (%)0.009.140.008.5422.92
Earning Retention Ratio (%)0.0082.180.0082.38-12.99
Cash Earning Retention Ratio (%)0.0090.860.0091.4677.08
Interest Coverage Ratio (X)5.685.047.425.082.92
Interest Coverage Ratio (Post Tax) (X)3.182.714.152.991.92
Enterprise Value (Cr.)2740.272515.823221.072115.32904.74
EV / Net Operating Revenue (X)1.061.011.541.280.56
EV / EBITDA (X)10.3912.3814.6410.396.28
MarketCap / Net Operating Revenue (X)0.910.831.311.090.23
Retention Ratios (%)0.0082.170.0082.37-12.99
Price / BV (X)3.282.643.792.750.63
Price / Net Operating Revenue (X)0.910.831.311.090.23
EarningsYield0.040.030.030.030.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 698.40

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 4.20% compared to the current price 729

Intrinsic Value: 1,020.94

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 40.05% compared to the current price ₹729

Last 5 Year EPS CAGR: 46.18%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.75%, which is a positive sign.
  2. The company has higher reserves (513.58 cr) compared to borrowings (399.33 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.25 cr) and profit (90.58 cr) over the years.
  1. The stock has a high average Working Capital Days of 52.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 73.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Somany Ceramics Ltd:
    1. Net Profit Margin: 3.83%
      • 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: 16.75% (Industry Average ROCE: %)
      • 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. ROE%: 13.45% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.18
      • 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.
    5. Quick Ratio: 0.56
      • 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.
    6. ✗ Stock P/E: 30.4 (Industry average Stock P/E: )
      • 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.
    7. Total Debt / Equity: 0.46
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of Somany Ceramics Ltd?

The latest fair value of Somany Ceramics Ltd is ₹698.40.

What is the Market Cap of Somany Ceramics Ltd?

The Market Cap of Somany Ceramics Ltd is 2,989 Cr..

What is the current Stock Price of Somany Ceramics Ltd as on 25 June 2024?

The current stock price of Somany Ceramics Ltd as on 25 June 2024 is ₹729.

What is the High / Low of Somany Ceramics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Somany Ceramics Ltd stocks is 819/561.

What is the Stock P/E of Somany Ceramics Ltd?

The Stock P/E of Somany Ceramics Ltd is 30.4.

What is the Book Value of Somany Ceramics Ltd?

The Book Value of Somany Ceramics Ltd is 176.

What is the Dividend Yield of Somany Ceramics Ltd?

The Dividend Yield of Somany Ceramics Ltd is 0.41 %.

What is the ROCE of Somany Ceramics Ltd?

The ROCE of Somany Ceramics Ltd is 14.5 %.

What is the ROE of Somany Ceramics Ltd?

The ROE of Somany Ceramics Ltd is 13.0 %.

What is the Face Value of Somany Ceramics Ltd?

The Face Value of Somany Ceramics Ltd is 2.00.

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