Broker research reports for stocks which have been downgraded by brokers. Both recommendation downgrades,
as well as share price target downgrades are available for companies in Industry - Ceramics.
Broker Research reports: latest Downgrades
for Industry - Ceramics
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,...
One-offs led Weak Quarter; H2 to be better! About the stock: Somany Ceramics is the second largest tiles manufacturer in Riding on real estate strong cycle, the company has guided for mid to high single digit tiles volumes ahead in FY26. Q2FY26 Performance: Somany ceramics tile volumes were flat YoY at 17.8 MSM with tile revenues of 570.6, were up 0.4% YoY. The overall revenue was at 680.5 crore, was up 2.9% YoY. The EBITDA margins were subdued at 8.1%, down 72bps YoY, given the higher operating expenses. PAT stood at ~15 crore, down 12.6% YoY...
Cost rationalisation measures boost margins: We highlight the company has taken various measures including staff rationalisation, promoters forgoing salary, unification of sales and packaging re-engineering etc. to control cost, which has boosted operating margins. The company's cost optimization measures included the unification of sales and procurement functions for bulk purchasing, packaging re-engineering resulting in annual savings of 3035 crore, workforce rationalization, a hiring freeze, and stringent control over advertising expenditures. Management expects Profitability to improve on...
We have revised our FY26/27 earnings estimates downward by 7.4%/9.1% due to weak demand, the discontinuation of the Kajaria Plywood business, and margin contraction. We had downgraded our rating to Accumulate' from BUY', we value the stock at 30x FY27E EPS to arrive at revised TP of Rs878 (earlier Rs 966). The management has refrained from providing guidance due to prevailing low demand conditions but expects to outperform the industry in FY26. KJC expects margins of ~14% in FY26, However, Q4FY25 margins were...
Kajaria Ceramics’ (KJC) 4QFY25 EBITDA was below our estimate due to lowerthan-estimated realization and higher-than-estimated other expenses. EBITDA (including discontinued operation) declined ~28% YoY to INR1.7b (~28% miss) and OPM contracted 3.8pp YoY to ~10% (est. ~13%).
Kajaria Ceramics (KJC) reported Q3FY25 consol. revenue growth of 1% YoY with tile volume growth of 6.7% YoY (5- year CAGR of 7.2%) and realisation decline of 3.7% YoY (-1.9% QoQ). EBITDA margin shrunk 274bps YoY/69bps QoQ to 12.8% due to higher employee cost, other expenses and lower utilisation of new sanitaryware plant, resulting in 16.8%/25.4% YoY EBITDA/APAT dip.
