Religare Capital has maintained 'Buy' on Somany Ceramics (SOMC) after the company declared its second quarter results. The stock broker fixed price target at Rs 455.

Commenting on the results, Religare said, ''SOMC reported below-expected Q2FY16 revenues, up only ~8.4% year-on-year (YoY) to ~Rs 4.03 billion, as sales of Rs 220 million-230 million were pushed to the next quarter due to a truckers' strike in September-end. EBIDTA margins however expanded 43bps YoY to ~6.9% (RCMLe: 6.5%) on lower other costs, pushing up adj. PAT by ~25% YoY.''

Commenting on the investment rationale, the stock broker said, ''We tweak estimates marginally to build in the lower FY16 revenue growth guidance (15-16% from 18-19%), we restate Buy with a Sep’16 TP of Rs 455 from Rs 465 earlier. We cut our FY16, FY17 and FY18 revenue and PAT estimates by ~2% on account of the revised guidance but maintain our positive outlook on the stock.'' 

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