CMP: 42

Somany Ceramics Limited manufactures ceramic wall and floor tiles. The Group exports its products to Europe, the Middle East, Australia, New Zealand, Mauritius, South Africa and Sri Lanka.

Somany Ceramics is a 140 Crore penny cap stock. Its currently trading at a P/E of little over 5. Liabilities are high, but gets justified for the growth and low P/E of the company. Revenues have grown from 275 Crores to 714 Crores over the last 5 years. Profits have risen more less than 3 Crores to over 23 Crores backed by NPM growth. NPM has grown impressively from 1% to over 3% over the last 5 years. Buy and hold for long term gains.