Multiple triggers to drive 12% CAGR in organized tile industry: (i) Government policy reforms like Swachh Bharat Abhiyaan, 100 smart cities, Housing for all by 2022, real estate bill, implementation of GST, (ii) Tile penetration is at just 11% in India with bulk of the houses having mud and cement flooring, (iii) shift towards value added vitrified tiles, (iv) Anti-dumping duty of USD 1.37/sq.m on imports from China, imposed in March 2016 is likely to get extended which shall translate to higher growth for domestic manufacturers. The growth of the tiles industry (size currently pegged at INR255bn) has decelerated from 20% CAGR in FY10-FY14 to 9% over FY14-16 largely due to the sustained slowdown in real estate, particularly in metros and tier-1 cities. However with structural drivers discussed above, we expect the organised tiles industry growth to accelerate to a CAGR of 12% over the next two years. Motilal Oswal value Somany at 24.2x FY18E earnings (a 15% discount to Kajaria) and arrive at a target price of INR 700.Trendlyne has 5 reports on SOMANYCERA updated in the last year from 4 brokers with an average target of Rs 494.3. Brokers have a rating for SOMANYCERA with 1 price upgrade in past 6 months.