Somany Ceramics

Despite these challenges, Abhishek Somany remains optimistic about demand prospects, citing a strong real estate pipeline, increasing adoption of large-format tiles and sustained growth in commercial construction. Edited excerpts:

Somany Ceramics’ shares have fallen sharply amid weak tile demand and margin pressure, but brokerages remain bullish, betting on a turnaround at its loss-making Max plant and better margins.

Diwali picks 2024: Brokerage firm Choice Broking has suggested 10 stocks to buy in the festive season - Bajaj Auto, Bharat Dynamics, ACC Ltd, Somany Ceramics, TCS, HCL Tech, EFC (I) Ltd, Granules India, Global Health and Ugro Capital.

Stocks to buy: Nifty 50 has gained over 8 per cent this year, with experts predicting a rise to 25,000 by year-end. Investors are advised to choose stocks with strong fundamentals. Recommendations include LIC Housing, ICICI Lombard, Somany Ceramics, RailTel and MRPL.

Somany Ceramics saw a 17.4% surge in shares, reaching ₹ 729 per share, driven by strong performance in Q4 and FY24. Operating profit increased by 30% YoY, attributed to stable input costs and cost optimisation efforts.

The Board of Directors of Asit C Mehta Financial Services approved the Rights Issue, for which the record date has been revised to December 15, 2023

Current microcap universe valuation in terms of trailing earnings yield excluding loss pools is around 6% (trailing P/E of 16x-17x) as compared to 4% for large caps (trailing P/E of ~24x), thereby, offering reasonably cheap valuations in terms of risk spread in a bull market environment.