X

Somany Ceramics Ltd. Stock Analysis

Small Cap
Evaluated by 1116 users | BSE: 531548 | NSE: SOMANYCERA |
Ceramics/Marble/Granite/Sanitaryware
In 1969 H L Somany incorporated a company called Somany Pilkington's, which later became Somany Ceramics. Setting benchmarks and creating trends has always been a driving force for Somany Ceramics.In the Indian tiles sector, Somany has achieved a clear leadership position by wholeheartedly...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Somany Ceramics Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 13.77%14.12%15.22%12.05%13.96%14.48%13.83%8.73%6.84%5.66%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7208791,0541,2651,5431,7121,7311,7131,7151,610
Y-o-Y Gr. Rt.-22.1%19.9%20%22%10.9%1.1%-1.1%0.1%-6.1%
Adjusted EPS (Rs.) 7.057.579.367.7411.6515.922.917.3212.538.37
Y-o-Y Gr. Rt.-7.4%23.7%-17.3%50.5%36.5%44%-24.4%-27.7%-33.2%
Book Value per Share (Rs.) 30.1136.4944.3757.5366.42101.03123.68137.02144.66143.1
Adjusted Net Profit 24.326.132.330.145.267.49773.453.135.5
Net Op. Cash Flow (Rs. Cr.) 23.578.670.773.924.859.611711185.9153
Debt to Cash Flow from Ops 7.592.122.32.327.754.14.244.876.673.26
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Somany Ceramics Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.4%0.9%-2.4%-6.1%
Adjusted EPS 1.9%-6.4%-28.5%-33.2%
Book Value per Share 18.916.65-1.1
Share Price 25% -5.9% -31.7% 30.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 26.0622.7423.1515.9818.7919.6420.3813.298.895.81
Operating Profit Margin (%) 9.538.618.186.637.018.4313.5611.129.618.36
Net Profit Margin (%) 3.382.973.122.192.93.996.584.793.52.48
Debt to Equity 1.721.321.060.770.740.570.950.930.930.82
Working Capital Days 125117112108107117140192210193
Cash Conversion Cycle 68553728313860100102100
Entity Percentage Holding
Promoters 54.70%
Institutions 18.34%
Non-Institutions 26.96%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Somany Ceramics Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Somany Ceramics Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Somany Ceramics Ltd.'s performance infers:

Somany Ceramics Ltd. earnings have declined by -6.4%, whereas share price has depreciated -5.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Somany Ceramics Ltd. share prices over the last 10 years. Here is what we found out:

Somany Ceramics Ltd. share price has depreciated 16.7% annually over the past ten years.

In 1969 H L Somany incorporated a company called Somany Pilkington's, which later became Somany Ceramics. Setting benchmarks and creating trends has always been a driving force for Somany Ceramics.

In the Indian tiles sector, Somany has achieved a clear leadership position by wholeheartedly adopting forward thinking and an innovative and futuristic approach. Whether ceramic glazed tiles, vitrified tiles, sanitary ware or porcelain floor tiles, Somany prides itself in being at the very

In 1969 H L Somany incorporated a company called Somany Pilkington's, which later became Somany Ceramics. Setting benchmarks and creating trends has always been a driving force for Somany Ceramics.

In the Indian tiles sector, Somany has achieved a clear leadership position by wholeheartedly adopting forward thinking and an innovative and futuristic approach. Whether ceramic glazed tiles, vitrified tiles, sanitary ware or porcelain floor tiles, Somany prides itself in being at the very forefront of style and quality. From raw material imported from Italy and Spain, to the constant endeavor to be the first to introduce new products in India, Somany has been, and will always strive to be a dynamic leader in its field.

The dynamic leadership team in Somany not only spans three generations of able leaders, it also brings together their staggering breadth of experience and wisdom. With Shri H L Somany at the helm as Founder, Shri Shreekant Somany as the CMD and Shri Abhishek Somany as the JMD, the company is heading towards an exciting phase of expansion and growth. This core leadership team along with a large team of highly dedicated and talented people is continuously working towards creating more value for all stakeholders. Their commitment to excel in every sphere and to fuel growth in the core as well as new sectors has truly created a powerful vitality within the company, both in mind and spirit.

In 1971 the very first unit of Somany started production in Kassar, Haryana. Since then Somany has reached and surpassed many milestones – setting up of second unit in 1981, buyout of all equity shares by Somany's Indian promoters in 1994; ventured in retailing in 2007, joint venture with Keraben under brand name “Synergy”, got patent for VC technology-a first ever in Indian Ceramics industry and incorporation of HL Somany group.

Somany Global flagship retail showrooms are currently located in Delhi, Gurgaon, Ludhiana and Mumbai, Pune and Indore. Many other retail showrooms are about to be opened in leading centers. These showrooms cater to high-end customers and offer imported tiles as well as exclusive Aqua ware brand sanitary ware. A large network of Somany display centers are also spread across the country.

A wide cutting-edge array of designs and material make up the inspiring Somany range of tiles. Somany strives to bring its customers floor, wall, vitrified, ceramic, porcelain and innovative tiles that are the very latest in the world. Somany prides itself in the sheer variety of design and finish, and constantly looks to bring new and trend-setting ideas into the tile industry. The futuristic patented VC Shield range of tiles from Somany, are the world's most durable floor tiles. Created using the breakthrough, 'Veilcraft technology', that creates a special layer on the tiles that keep them free from abrasion, scratches and stains, these tiles retain the original glaze and finish for years. No wonder then, that these tiles comprehensively outperform ordinary ceramic tiles including PEI grade 5 tiles.

Venturing into the burgeoning sanitary ware sector, Somany has already made major in-roads into this market. With its range of high quality products and offerings under the brand name of Aqua ware, Somany is focusing on creating a niche for itself in this sector, by bringing in and adopting the latest in design, concept and technology.

In the endeavor to bring the very best to customers, it sources its raw material from as far as Italy, Spain, and China besides Rajasthan, Uttar Pradesh, Madhya Pradesh and other major centers in the country.

Somany has a production capacity of 15.7 million sq mt per annum from its Haryana and Gujarat units. It has always focused on acquiring and leveraging the latest technologies and know-how. A commitment to bring to life new ideas and design innovations is driven by the huge amounts of funds invested in research and development. This has borne fruit in the form of Somany's achievement of establishing the very first Government Recognized In-house Research & Development Centre.

Somany has also brought in some ground-breaking technologies into the Indian market. Their highly advanced Rotocolour Machine has the capacity to decorate ceramic tiles with glazes, using a serigraphic decorating system that employs silicon cylinders. This integrated system that optimizes decoration of tiles enables any kind of random design and also a marble effect. A truly trend-setting achievement, it has helped Somany to set new industry benchmarks in quality and production standards for ceramic tiles.

Another exceptional technological advantage has been achieved with Somany's new Laser Guided Vehicle system. This cutting-edge material transportation system has automated the movement of ceramic materials in the production system. The Laser Guided Vehicle facilitates optimal and accurate handling, thereby minimizing rejection of in-process materials during the production of tiles. All of this is a result of Somany's commitment to bring the best and the latest to its valued stakeholders and customers in India.

Product range of the company includes:

Tiles

  • Floor Tiles
  • Wall Tiles
  • Imported Tiles

Sanitary Ware

  • Toilets
  • Basins
  • Urinals

Achievements/ recognition:

  • R & D initiatives and activities recognized by the Govt. Of India
  • ISO 9002 awarded
  • ISO 14001 awarded
  • ISO 9001 : 2000 awarded
  • Export House award
  • Capixel award for 3 consecutive years

Awards

  • 2010 Won the Power Brands Award.
    Somany became India’s first tile company to be felicitated with the BIS mark license for its products, manufactured at the Kassar manufacturing unit.
  • 2011 Won the Power Brands Award.Somany became India’s first tile company to be felicitated with the BIS mark license for its products, manufactured at the Kassar manufacturing unit.Somany Ceramics inaugurates First Somany Studio showroom in DindigulSomany Ceramics inaugurates First Somany Studio showroom in IndoreSomany Ceramics inaugurates First Somany Global Exclusive showroom in AhmedabadSomany Ceramics inaugurates First Somany Exclusive showroom in Anantnag 2011Green Building Certification
  • 2012 Somany Ceramics inaugurates Somany Exclusive showroom in KochiSomany Ceramics enters into partnership with Fiandre GroupSomany launches ‘The King of all Slabs’ -Somany Ceramics inaugurates Somany Studio showroom in BangaloreSomany Ceramics inaugurates First SOMANY STUDIO showroom in GandhidhamSomany Ceramics-Kadi Plant has been awarded with OHSAS 18001 : 2007 Certification by International Accreditation of UKAS by Certification body ISOQAR.
  • 2013-India Innovative 100 for the year 2013. 
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback