Somany Ceramics Receives 'Hold' Rating Despite Decline in Financial Performance

Despite a negative financial performance in the quarter ending June 2024, Somany Ceramics has been given a 'Hold' rating by MarketsMOJO. The company's score has fallen to -11 from 15 in the last 3 months, indicating a decline in overall performance.

However, there are some positive aspects to the company's financials. Somany Ceramics has shown a strong operating cash flow, with the highest annual amount of Rs 312.39 crore and a consistent growth over the last three years. The company has also been distributing higher dividends to its shareholders, with the highest dividend per share (DPS) of Rs 3.00 in the last five years.

On the other hand, there are some concerning factors in the financials of Somany Ceramics. The profit before tax less other income (PBT) has fallen by -28.11% year on year, indicating a negative trend in the near term. The same can be seen in the profit after tax (PAT), which has fallen by -35.7% year on year. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters.

The net sales and operating profit (PBDIT) have also shown a declining trend in the last five quarters, with the operating profit margin at its lowest of 8.46%. The earnings per share (EPS) have also decreased, indicating a decline in profitability for shareholders. Additionally, the company's short term liquidity has deteriorated, with the lowest amount of cash and cash equivalents in the last six half yearly periods.

Furthermore, the company's pace of settling its debtors has slowed down, with the lowest debtors turnover ratio in the last five half yearly periods. These factors suggest a challenging financial situation for Somany Ceramics in the near term.

In conclusion, while Somany Ceramics has some positive aspects in its financials, there are also some concerning factors that need to be addressed. Investors are advised to hold their position in the company's stock and monitor its performance closely.