Somany Ceramics Limited

Industrials — Building Products & Equipment · NSE

₹583.90−₹1.95 (−0.33%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Somany Ceramics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Somany Ceramics Limited manufactures and trades in decor solutions in India.

IndustryBuilding Products & Equipment

SectorIndustrials

Employees2,001

Annual revenue₹2,771 Cr

How does it make money?

Turns over ₹2,771 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 2,001 employees supports ₹1.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.38 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 3.8% and earnings to grow about 2.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+3.8%

Est. earnings growth+2.6%

Analysts15

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +12% while net margin moved +1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+12%

Margin effect+1%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.6% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

22.6x

3Y Median

31.3x

40 monthly readings · mean 31.9x · range 18.3x–49.5x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 28% below its 3y median of 31.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 75% below the peer median of 88.8x.

vs. its own history

Cheap

31.3x median over 40 months · -28%

vs. sector peers

Cheap

88.8x median of 3 peers · -75%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.0x

PEG

5.21

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.8% to 9.5% over 3 years.
Debt is being paid down
Total debt is down 33% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.8% to 9.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 33% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 75% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹191 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 7%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 4.0% CAGR
Latest reported year was 24.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹191 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹2,395 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.84x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹25.87

Profitable

Profitable on a per-share basis

ROE

9.6%

Moderate

Moderate capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.41x

Low

Conservative leverage

Revenue Growth (YoY)

24.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

242.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.03%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹191 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

16.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.7%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.77

Defensive

Steadier than the market

52W Range Position

84%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

603.2 / 565.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,465 Cr	₹2,590 Cr	₹2,643 Cr	₹2,771 Cr	+4.0%
EBITDA	₹193 Cr	₹260 Cr	₹228 Cr	₹263 Cr	+10.9%
EBITDA Margin	7.8%	10.0%	8.6%	9.5%	—
PAT (Net Profit)	₹71 Cr	₹97 Cr	₹60 Cr	₹81 Cr	+4.3%
EPS	₹16.83	₹22.98	₹14.65	₹19.76	+5.5%
ROE	9.1%	13.5%	7.8%	9.6%	—
ROCE	11.1%	16.6%	12.1%	12.5%	—
Total Debt	₹534 Cr	₹371 Cr	₹346 Cr	₹361 Cr	-12.3%
Free Cash Flow	-₹12 Cr	₹232 Cr	₹58 Cr	₹191 Cr	—

🟢 Revenue has grown at 4.0% a year over 3 years.

🟢 EBITDA has grown at 10.9% a year over 3 years.

🟢 EBITDA Margin has risen from 7.8% to 9.5% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 4.3% a year over 3 years.

🟢 EPS has grown at 5.5% a year over 3 years.

🟡 ROE has held roughly flat at 9.6% over 3 years.

🟢 ROCE has risen from 11.1% to 12.5% over 3 years (+1.3 pts).

🟢 Total Debt has shrunk at 12.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹12 Cr to ₹191 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,011 Cr

Total Liabilities

₹1,091 Cr

Cash & Equivalents

₹128 Cr

Operating Cash Flow

₹247 Cr

Capex

-₹56 Cr

Shareholding (proxy)

Institutional Holding

19.7%

Insider Holding

59.3%

Corporate Actions

Dividend Rate

₹6

Ex-Dividend Date

05 Aug 2026

Analyst Consensus

Recommendations

16 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹649.44

+11.2% vs CMP

Target Range

₹500 – ₹876

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive2 mixed3 general

Somany Ceramics Share Price: yearly high with sector context

Univest, 05 Oct

Somany Ceramics Limited Just Recorded A 29% EPS Beat: Here's What Analysts Are Forecasting Next

Simply Wall Street, 15 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Somany Ceramics to host analyst call on September 29, 2026

scanx.trade, 29 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Somany Ceramics Q4 profit jumps 77% as margins expand; declares dividend

CNBC TV18, 15 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Somany Ceramics expands equity in Sudha Somany with ₹1.8 Crore rights issue investment

Sahi, 10 Jun

Somany Ceramics Stock Signals to Watch This Week

Univest, 24 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑