Somany Ceramics Ltd

NSE: SOMANYCERA BSE: 531548

₹570.10

(1.23%)

Thu, 03 Sept 2026, 10:43 pm

Market Cap (in Cr)2286.05

PE Ratio22.03

Dividend1.08

Producer Manufacturing

Building Products

24.5K

Somany Ceramics Analysis

Pros

Dividends per share have increased over the past 10 years.
Dividends paid are well covered by earnings (5.7x coverage).
Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
Somany Ceramics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
Somany Ceramics's dividend is below the markets top 25% of dividend payers in India (3.08%).

Pros

Somany Ceramics's earnings are expected to grow significantly at over 20% yearly.
Somany Ceramics's earnings growth is expected to exceed the India market average.
Somany Ceramics's earnings growth is expected to exceed the low risk savings rate of 7.2%.

Cons

Cash flow for Somany Ceramics is expected to increase but not above the 50% threshold in 2 years time.
Somany Ceramics's earnings are expected to decrease over the next year.
Somany Ceramics's net income is expected to increase but not above the 50% threshold in 2 years time.
Somany Ceramics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Performance (ROE) is not expected to exceed the current IN Building industry average.
A decline in Somany Ceramics's performance (ROE) is expected over the next 3 years.
Somany Ceramics's revenue is expected to increase but not above the 50% threshold in 2 years time.
Somany Ceramics's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
Somany Ceramics's revenue growth is positive but not above the India market average.

Pros

Somany Ceramics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Somany Ceramics is profitable, therefore cash runway is not a concern.
Somany Ceramics is profitable, therefore cash runway is not a concern.
Debt is covered by short term assets, assets are 1.5x debt.
Somany Ceramics's cash and other short term assets cover its long term commitments.
Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).

Cons

Debt is not well covered by operating cash flow (15.1%, less than 20% of total debt).
The level of debt compared to net worth has increased over the past 5 years (73.1% vs 80.5% today).
Somany Ceramics's level of debt (80.5%) compared to net worth is high (greater than 40%).
High level of physical assets or inventory.

Pros

The tenure for the Somany Ceramics board of directors is about average.
Shreekant's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

Shreekant's remuneration is higher than average for companies of similar size in India.

Pros

Cons

Pros

Somany Ceramics's 1-year earnings growth exceeds its 5-year average (0.5% vs -6.4%)

Cons

Somany Ceramics's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
Somany Ceramics used its assets less efficiently than the IN Building industry average last year based on Return on Assets.
Somany Ceramics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Somany Ceramics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Somany Ceramics's earnings growth has not exceeded the IN Building industry average in the past year (0.5% vs 2%).

Pros

Somany Ceramics is good value based on expected growth next year.
Somany Ceramics is good value based on earnings compared to the IN Building industry average.
Somany Ceramics is good value based on earnings compared to the India market.
NSEI:SOMANYCERA is up 24.4% outperforming the Building industry which returned 6.6% over the past month.
NSEI:SOMANYCERA is up 24.4% outperforming the market in India which returned 8% over the past month.

Cons

Somany Ceramics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Somany Ceramics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Somany Ceramics is overvalued based on assets compared to the IN Building industry average.
SOMANYCERA underperformed the Building industry which returned -33.2% over the past year.
SOMANYCERA underperformed the Market in India which returned -14.5% over the past year.