Why We Think Somany Ceramics Limited (NSE:SOMANYCERA) Could Be Worth Looking At

In This Article:

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Somany Ceramics Limited (NSE:SOMANYCERA), it is a financially-healthy company with a a strong history of dividend payments and a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Somany Ceramics here.

Excellent balance sheet established dividend payer

SOMANYCERA is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. SOMANYCERA’s has produced operating cash levels of 0.21x total debt over the past year, which implies that SOMANYCERA’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NSEI:SOMANYCERA Future Profit October 28th 18
NSEI:SOMANYCERA Future Profit October 28th 18

SOMANYCERA is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NSEI:SOMANYCERA Historical Dividend Yield October 28th 18
NSEI:SOMANYCERA Historical Dividend Yield October 28th 18

Next Steps:

For Somany Ceramics, I’ve put together three key aspects you should further examine:

  1. Historical Performance: What has SOMANYCERA’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is SOMANYCERA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SOMANYCERA is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SOMANYCERA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.