Check Before You Invest : Somany Ceramics Ltd

Snapshot

Q.1 Which industry/sub-sector does Somany Ceramics Ltd belong to?

Somany Ceramics Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Ceramics/Marble/Granite/Sanitaryware segment.

Q.2 Is Somany Ceramics Ltd a good quality company?

Somany Ceramics Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Somany Ceramics Ltd undervalued or overvalued?

Somany Ceramics Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Somany Ceramics Ltd a good buy now?

Somany Ceramics Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Somany Ceramics Ltd?

Somany Ceramics Ltd revenue growth is 2.6% for FY-2025, which is below its 5-year CAGR of 10.55%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Somany Ceramics Ltd?

Somany Ceramics Ltd Return on capital employed is 12.93% for FY-2025, which is in line with its 5-year historical median of 12.93%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Somany Ceramics Ltd?

Somany Ceramics Ltd Return on Asset is 2.81%, which is below its 5-year historical median of 3.71%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Somany Ceramics Ltd?

Somany Ceramics Ltd Return on equity is 7.86% for FY-2025, which is below its 5-year historical median of 9.72%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Somany Ceramics Ltd?

Somany Ceramics Ltd Cash conversion cycle is 46 days, above its 5-year historical median of 40 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.34	1.28
ROE	7.86	9.72
ROCE	12.93	12.93
Cash Conversion Cycle	46 days	40 days

Q.6 Gross Profit margin of Somany Ceramics Ltd?

Somany Ceramics Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.4% for FY-2025, which is below its 5-year median of 8.1%, indicating decreasing margins.

Q.7 Operating Profit Margin of Somany Ceramics Ltd?

Somany Ceramics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.29% for FY-2025, which is below its 5-year median of 9.72% indicating decreasing margins.

Q.8 Net Profit Margin of Somany Ceramics Ltd?

Somany Ceramics Ltd Net Profit Margin is 2.18% for FY-2025, is below with its 5-year median of 3.67%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.4	8.1
Operating Profit Margin	8.29	9.72
Net Profit Margin	2.18	3.67

Q.9 Debt to Equity ratio of Somany Ceramics Ltd?

Somany Ceramics Ltd Debt-to-Equity ratio is 0.40, which is above with the industry average of 0.34, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Somany Ceramics Ltd?

Somany Ceramics Ltd Debt to cash flow from operations is 2.14, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Somany Ceramics Ltd?

Promoters hold 55.20% of the Somany Ceramics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Somany Ceramics Ltd vs industry peers?

Somany Ceramics Ltd revenue CAGR is 10.55%, compared to the industry median CAGR of 2.84%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	2.6	2.8
Gross Profit Growth	-18.4	9
Operating Profit Growth	-12	1.1
Net Profit Growth	-41.4	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.34	0.57
ROE	7.86	2.84
ROCE	12.93	5.52
Cash Conversion Cycle (days)	45.85	193

Valuation & price assessment

Q.1 Stock return of Somany Ceramics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 1.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	1.3%	2.4%	-4.1%	11.4%

Q.3 Valuation ratios of Somany Ceramics Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	29.65	31.78	24.02
Price to Book	2.39	3.37	0.90
Price to Sales	0.7	1.02	1.29
EV to EBITDA	8.92	11.64	10.79

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