Emkay Global maintains buy on Somany Ceramics, revises target price to Rs 217
Buy Somany Ceramics Ltd. at a price target of Rs 217.0 .
For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 419.14 crore, up 6.72% from last quarter sales of Rs 392.73cCrore and up 6.81% from last year same quarter sales of Rs 392.42 crore. The company has reported net profit after tax of Rs 8.84 crore in the latest quarter.
Management does not expect much recovery in sales volumes as demand remains affected in Private and Builders segments, said Emkay. The company has incurred Rs 26.18 crore in exceptional loss after a broker defaulted on payments, said Emkay. The brokerage has reduced FY20/21 EPS by 17.5%/25.6% considering lower sales volumes, higher depreciation costs, and lower other income.