Somany Ceramics Limited (SOMANYCERA) AI Stock Analysis

• Market Cap: ₹15.49B
• Dividend Yield: 0.71%
• Average Volume (3M): 1.69K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.79
• Revenue Growth: 4.20%
• EPS Growth: -31.88%
• Country: IN
• Employees: 1,953
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 4.40
• Shares Outstanding: 41,012,806
• 10 Day Avg. Volume: 861
• 30 Day Avg. Volume: 1,686
• PEG Ratio: -0.80
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 30.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹517.00
• Price Target Upside: 27.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 17.79
• Revenue Forecast (FY): ₹28.01B

• Rating: 62 Neutral
• Price Target: ₹400.00 ▼(-1.47% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

The overall stock score of 62 reflects strong financial performance with revenue growth and operational efficiencies, but challenges in net profitability and cash flow management. Technical analysis indicates a neutral to bearish trend, while valuation metrics suggest the stock may be overvalued with a low dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Improved operating margins

A large, sustained increase in EBIT and strong gross margins point to lasting operational improvements—better mix, pricing power, or cost control. Higher core profitability enhances cash generation ability and supports reinvestment, making the business more resilient over multiple quarters.

Moderate, stable leverage

A balanced debt-to-equity near 0.5 indicates measured use of leverage, limiting interest burden and preserving financial flexibility. This capital structure supports funding for capacity or working capital without excessive default risk, strengthening long-term strategic optionality.

Strong cash conversion from operations

High operating cash flow relative to net income signals quality of earnings and efficient working-capital management. Reliable cash conversion sustains day-to-day operations, funds maintenance capex, and provides a base for strategic investments over the medium term.

Negative Factors

Weak net profitability

A low and falling net margin shows that non-operational costs, finance charges, or taxes are eroding the conversion of operating profits to net income. Persistently thin net margins limit retained earnings, reduce capacity to self-fund growth, and increase sensitivity to margin shocks.

Declining free cash flow

A material drop in free cash flow constrains the company's ability to invest, cut leverage, or return cash to shareholders. Limited FCF relative to earnings can force external financing for expansion or capex, raising execution risk and potentially increasing financing costs.

Falling return on equity

A sharp decline in ROE signals reduced capital efficiency and weaker shareholder returns. If earnings growth does not keep pace with equity or assets, the company may struggle to justify reinvestment levels, potentially pressuring future growth and investor confidence.

Somany Ceramics Limited Business Overview & Revenue Model

Company Description

Somany Ceramics Limited engages in the manufacture and sale of ceramic tiles and related products in India. It offers ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, sanitaryware, and bath fittings, as well as tile laying solutions. The company provides its products under the Somany Duragress, Somany Durastone, Somany Glostra, Somany Vistoso, Somany Vitro, Somany Slipshield, Somany VC Shield, Somany Signature, and Somany French Collection brands. It serves banks, corporates, defense, developers, educational institutions, hospitals, hotels, IT, malls, residential complexes, retails. The company also exports its products. It operates through a network of 10,000 touchpoints, which comprises 3,000 dealers and 383 showrooms. The company was incorporated in 1968 and is headquartered in Noida, India.

How the Company Makes Money

Somany Ceramics primarily makes money by selling building-surface products—mainly ceramic tiles and vitrified tiles—into the housing and construction value chain. Revenue is generated from (1) domestic sales of tiles to trade channels such as dealers, distributors, and retailers, which then supply end customers including homeowners, contractors, and builders; (2) project/Institutional sales where products are supplied directly or via channel partners to real-estate developers and commercial projects; and (3) export sales where tiles are sold to overseas distributors or customers. The company’s earnings are driven by product mix (e.g., higher-value vitrified tiles versus commodity ceramic tiles), pricing, volumes, and capacity utilization in its manufacturing operations. Additional contributors can include sale of allied tile-related products (if offered in a period), brand-led premiumization, and working-capital/credit terms managed through its distribution ecosystem. Specific details on material partnerships, contract manufacturing arrangements, or the exact split of revenues by segment are not available in this response and are therefore null.

Somany Ceramics Limited Financial Statement Overview

Summary

Somany Ceramics Limited shows strong revenue growth and operational efficiencies but faces challenges in net profitability and cash flow management. The balance sheet remains stable with moderate leverage, while cash flow metrics indicate potential liquidity constraints. Strategic focus on enhancing net margins and optimizing free cash flow could bolster financial health.

Income Statement

The company has demonstrated a positive revenue growth rate over the years, with a significant jump in EBIT margin from 6.9% in 2024 to 19.6% in 2025, indicating improved operational efficiency. The gross profit margin remains strong at 32.9% for 2025. However, the net profit margin has declined to 2.3% in 2025 from 3.7% in 2024, highlighting potential issues in controlling non-operational expenses.

Balance Sheet

The debt-to-equity ratio is relatively stable at 0.47 in 2025, reflecting a balanced leverage approach. Return on equity (ROE) has decreased to 7.8% in 2025 from 13.4% in 2024, suggesting reduced profitability from equity. The equity ratio is at 39.2% for 2025, indicating a steady reliance on equity financing. Overall, the balance sheet shows stability with manageable leverage.

Cash Flow

The free cash flow has decreased significantly from 2024 to 2025, reflecting a negative growth rate. The operating cash flow to net income ratio is robust at 2.35 in 2025, indicating efficient cash conversion from earnings. However, the free cash flow to net income ratio is lower at 0.96, suggesting limited free cash availability for reinvestment or debt reduction.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	26.96B	26.59B	25.90B	24.65B	20.85B	16.46B
Gross Profit	9.90B	8.76B	7.76B	13.95B	10.92B	8.11B
EBITDA	2.16B	2.21B	2.62B	2.01B	2.20B	1.85B
Net Income	559.90M	600.70M	968.89M	714.92M	886.87M	570.23M
Balance Sheet
Total Assets	19.03B	19.67B	19.84B	20.11B	17.92B	15.65B
Cash, Cash Equivalents and Short-Term Investments	786.80M	903.40M	776.54M	1.80B	2.00B	2.35B
Total Debt	3.27B	3.60B	3.78B	5.34B	5.12B	4.61B
Total Liabilities	10.41B	11.23B	11.51B	11.17B	9.58B	8.10B
Stockholders Equity	7.85B	7.72B	7.20B	7.87B	7.26B	6.41B
Cash Flow
Free Cash Flow	707.60M	577.90M	2.32B	-119.80M	-1.14B	3.12B
Operating Cash Flow	1.03B	1.41B	3.93B	1.65B	1.57B	3.56B
Investing Cash Flow	-387.40M	-718.30M	-1.23B	-908.90M	-2.55B	-896.34M
Financing Cash Flow	-772.60M	-675.90M	-3.56B	-213.20M	639.06M	-1.39B

Somany Ceramics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 405.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOMANYCERA, the sentiment is Negative. The current price of 405.95 is above the 20-day moving average (MA) of 380.19, above the 50-day MA of 393.72, and below the 200-day MA of 459.60, indicating a bearish trend. The MACD of -7.13 indicates Negative momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 82.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOMANYCERA.

Somany Ceramics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAMCOIND	69 Neutral	₹22.40B	6.02	―	0.32%	3.75%	77.08%
SHREEPUSHK	68 Neutral	₹9.66B	17.66	―	0.52%	28.67%	50.12%
SOMANYCERA	62 Neutral	₹15.49B	22.77	―	0.71%	4.20%	-31.88%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MANGLMCEM	59 Neutral	₹22.90B	46.52	―	0.19%	10.61%	43.88%
TNPL	58 Neutral	₹8.97B	36.69	―	2.08%	4.65%	-127.24%
SHREDIGCEM	45 Neutral	₹8.92B	-48.17	―	1.66%	3.09%	-50.15%

Somany Ceramics Limited Corporate Events

Somany Ceramics Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Somany Ceramics Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The certificate, issued by its registrar and share transfer agent Maheshwari Datamatics Private Limited, confirms that dematerialisation and related processing of the company’s securities have been carried out within prescribed timelines and in line with depository and stock exchange requirements, underscoring the company’s adherence to regulatory norms in handling its shares.

Somany Ceramics Schedules Analyst and Investor Meet in Mumbai

Somany Ceramics Limited has notified the stock exchanges that its officials will meet analysts and institutional investors in a physical group meeting in Mumbai on 8 January 2026. The interaction will be confined to publicly available information, with no unpublished price-sensitive information to be shared, underscoring the company’s adherence to disclosure regulations and its ongoing efforts to maintain transparent engagement with the investment community.