With an upside of 8% from the CMP, we maintain our HOLD rating on the stock.

Somany Ceramics Ltd.'s (SCL) Q2FY26 result was below our estimates on key parameters. The company reported muted sales volume as Northern markets were weak due to excess rains. Further, the domestic market witnessed higher sales volume being captured by local players due to a substantial price differential resulting from poor quality and high levels of tax/duty evasion. This high level of evasion was expected to go down post-GST, but has persisted. On a positive note, the industry's overall export pickup (up 7% based on five months of data) is significant because it means a lot of Morbi players will start re-exporting,...

Amber Enterprises’ (Amber) Q2FY26 performance was marred by subdued margins due to weaker margins of RAC segment.

RRKABEL’s 2QFY26 earnings were above our estimates, led by a higherthan-estimated margin in C&W. Revenue grew ~20% YoY to INR21.6b (in line), driven by robust growth of ~22% in the C&W segment.

Kajaria Ceramics reported a broadly in-line Q2FY26 estimates on the revenue front, however profitability beat expectations on the back of sustained cost optimization measures. Consolidated revenue stood at Rs12bn, up just 1% YoY, reflecting continued weakness in tiles volume amid sluggish domestic demand. However, EBITDA rose sharply by 34% YoY to Rs2.1bn, aided by savings in packaging, procurement, and manpower costs, translating into a margin of 18% (+452bps). PAT came in at Rs1.3bn (+58% YoY). Management highlighted that short-term pain from the ongoing unification of sales and operations has...

We attended the plant visit event organized by R R Kabel (RRKABEL) at its Waghodia plant in Gujarat, where we interacted with the senior management team, followed by a tour of the plant.

The primary as well as secondary sales were impacted in Q2FY26 due to excess trade inventory at beginning of Q2FY26 and five weeks difference in announcement and implementation of GST reduction – that’s the chief takeaway from the management call.

We interacted with the management of Voltas (VOLT) to understand the current demand trend, the company’s strategy to play festive demand and GST rate cuts, and the segmental performance.

Polycab is the largest company by revenue in the Indian electrical industry, holding a 26-27% share in the organised wires & cables (W&C) market and 19-20% of the overall ~?900 billion W&C market.

Kajaria reported a moderate financial performance, impacted by a challenging market environment, with domestic demand remaining sluggish. However, the company is optimistic about future growth, driven by potential export improvements, slightly better domestic demand and government initiatives. The integration of its divisions and efforts to optimise costs are expected to yield benefits. Although the integration is expected to improve margins and increase volume growth, sluggish demand may still pose a risk to the realisation of these benefits. Considering these factors, we...

Somany Ceramics Ltd.'s (SCL) Q1FY26 result was broadly in-line with our estimates on key parameters. Market demand during Q1FY26 was impacted by lower sales in India. Exports also faced pressure in Q1 FY26. Further, sales of some low product mix items and old/deleted stock, which led to a reduction in realization, though a small price increase was implemented in July. The management guided that the focus is on innovation and better products to move up the value chain. New product launches are planned for September and after Diwali. Despite weak Q1, the management is not changing its guidance for...

Voltas’ Q1FY26 performance was weighed down by softer summer product sales, following an unusually early monsoon.

Voltas (VOLT)’s 1QFY26 earnings were below our estimate. Revenue dipped ~20% YoY to INR39.4b (-10% vs. estimate), due to ~25%/16%/3% YoY decline in UCP/PES/EMPS revenue.

We downward revise our FY26/FY27E earnings estimate by 18.5%/6.2% factoring in correction in aggregate volume in UCP while margins are expected to be at 5% due to promotional offers aimed at liquidating inventory, high fixed costs from low plant utilization, and increases in cost due to BEE norms. Anticipating strong demand, Voltas's trade partners had built up inventory; however, softer secondary sales led to slower off-take and elevated stock levels, prompting the company to temporarily scale back production. UCP EBIT margins contracted due to focus on driving volumes through aggressive pricing...

Cera Sanitaryware Ltd.'s (Cera) Q1FY26 performance was in-line with our estimate on net sales front, while margins disappointed. The industry is facing subdued market condition from the last six to seven quarters. Consequently, there has been no price increase in the sector for some time, especially in Sanitary ware. However, the management guided that the long-term outlook is expected to stay strong, supported by continued formalization of the sector, rising aspiration of the consumers, and supporting policy initiatives such as urban redevelopment, housing schemes, and sanitation infrastructure. The...

increase in employee cost and B2B contribution. CRS aims to outperform the industry by 6-7%, with EBITDA margin of 15-16% by the end of FY26. The company continues to hold off its sanitaryware expansion plans until the demand environment improves. We estimate revenue/ EBITDA/PAT CAGR of 11.4%/12.2%/10.7% over FY25-27E. We downward revise FY26/FY27E earnings estimate by 1.9%/2.8% and reduce TP to Rs7,178 (Rs7,389 earlier), based on 30x FY27E earnings. Maintain Accumulate' rating....

expansion, IP enhancement, and backward integration, while segments like Aerospace, Railways, OSAT and PCBs are expected to fuel margin expansion. We are maintaining our HOLD rating' due to the significant uptick in the stock...

industrial paints which is 45% of its sales (highest industrial paints share in sustained gains from paint+ innovations and 3) guidance of steady 13-14% EBITDA margin led by better product mix and improving demand scenario....