Somany Ceramics Ltd. share price target

Somany Ceramics (SOMC) reported in-line Q3FY23 consolidated revenue growth of 6% YoY (3-year CAGR of 12.6%) with tile volume growth of 3.7% YoY (3-year CAGR of 6.7%) and tile realisation growth of 2.2% YoY (-1.4% QoQ). Consolidated EBITDA margin contracted 449bps YoY (-32bps QoQ) to 6.5% due to higher raw material cost (gross margin shrinking 326bps/206bps YoY/QoQ) resulting in EBITDA/APAT decline of 37.2%/62.6% YoY.

Somany Ceramics (SOMC) reported in-line Q2FY23 consolidated revenue growth of
10.2% YoY (3-year CAGR of 13.5%) with tile realisation growth of 11.3% YoY (+1.3%
QoQ) as tiles volume declined 1.7% YoY (+11.5% QoQ; 3-year CAGR of 8.1%) on a high base.

Q2 revenue growth at 9% YoY due to 24.5% increase in blended realisation (+13% QoQ); however, tile volumes declined 2% YoY

Somany Ceramics (SOMC) reported better than expected consolidated Q1FY23 EBITDA margin increase of 106bps YoY (-17bps QoQ) to 8%.

Q4 revenue growth muted at 9.7% YoY due to a 5% decline in tile volumes, though blended realisation rose 14% to Rs 333/msm