Archive · 15 Jan 2026
Analysts Bet on Somany Ceramics Despite Tough Year
Somany Ceramics has had a tough year with its stock down 27% over the past year.
However, most analysts recommend buying the stock because they believe the company will improve in the future.
The main issues are a loss-making plant and weak demand, but analysts think the plant will become profitable within 18 months.
The company is also working to improve its margins and reduce debt.
Despite some risks, like competition from cheaper tiles, analysts are optimistic about Somany's future.
Somany Ceramics' stock has fallen 27% over the past 12 months, underperforming peers like Kajaria Ceramics and Orient Bell.
19 out of 21 brokerage firms recommend buying or adding Somany Ceramics shares, citing a potential multi-year turnaround.
The company's underperformance is attributed to plant-level losses and margin pressures, particularly at the loss-making Max plant.
Analysts expect the Max plant to break even within 18 months and turn profitable by FY28, with improved capacity utilization.
Somany is focusing on improving margins through price hikes, reducing channel incentives, and launching a new premium brand.
- Who
- Somany Ceramics, analysts, investors
- What
- Analysts are betting on Somany Ceramics despite a tough year
- When
- Over the past 12 months up to 12 January
- Where
- India, with focus on the tiles sector
- Why
- Analysts expect a multi-year turnaround and recovery at the Max plant
- Stock Performance (12 months)
- Down 27%
- Broker Recommendations
- 19 'buy' or 'add', 2 'hold'
- Max Plant Capacity Utilization
- 50% in Q2FY26
- Expected Breakeven for Max Plant
- Within 18 months
- Current Debt
- ₹300 million
- Target Ebitda Margins
- Over 10% in near term, 12–14% in 2 years
- Current P/E Ratio
- 27.15 (trailing), 20.9 (forward)
- FY28 Earnings Multiple
- 11 times