We expect domestic demand to improve from H2FY24 onwards. We also expect the tile export momentum to sustain, which will further help the industry to pass on the cost inflation, leading to margin expansion YoY in FY24E. We maintain our BUY rating on Somany Ceramics (TP of INR 780/sh: 12x FY25E EV/EBITDA, implying 23x FY25PE) and ADD rating on Kajaria Ceramics (TP of INR 1,310/sh: 21x FY25E EV/EBITDA implying 33x FY25 PE). We met the management of Orient Bell (OBL). The management highlighted that domestic demand remains muted in Q2 (similar to Q1), however, it expects things to firm up, going ahead, led by robust real estate demand. Exports from Morbi continue to firm up. As many plants have already shut down last year and as exports continue to firm up in Q2FY24, Morbi has not resorted to any shutdown (as it had in the previous years). Tile prices fell MoM in July but have remained stable thereafter. LNG prices bottomed out in June/July and have rebounded a bit in August (still down YoY and QoQ).