Somany Ceramics skids 20 per cent, hits lower circuit

The stock of Somany Ceramics on Monday was locked in lower circuit of Rs. 228.80 apiece, down by nearly 20 per cent from its previous close. The reason for this fall is bounce of cheque amounting to Rs. 26.2 crore issued in favour of Somany Ceramics by stockbroker Mentor Financial Services Private Limited.

The company has issued demand notices for repayment to Mentor Financial. Due to continued default by Mentor Financial, the company has now filed a criminal complaint against Mentor, its directors and its authorized signatory.

As on FY19, Somany’s cash & bank balance was Rs. 29.60 crore and over the company is continuously paying dividend in the range of Rs. 2 to 2.7 per share in last five years.

In the recently concluded quarter (Q1FY20), the company’s revenue grew by nearly 6.5 per cent yoy to Rs. 383.85 crore. Also, net profit during the period grew by 4.3 per cent to Rs. 8.74 crore.