Buyback Of Equity Shares: Building Material Stock Falls 7.13% In 1-Week

Somany Ceramics Ltd shares witnessed a decline of 7.13% in last 1-week span as buyback of equity shares begins today. Earlier board of Somany Ceramics approved the share buyback at Rs 850 per equity share. The share buyback is worth Rs 125 crore. It issued a BSE filing too on December 6 stating, "Board of Directors of Somany Ceramics on December 6 approved buyback of not exceeding 14,70,588 fully paid-up equity shares having face value of INR 2 (Indian Rupees Two only) each at a price of INR 850/- (Indian Rupees Eight Hundred and Fifty only) per equity share for an aggregate amount not exceeding INR 1,25,00,00,000 (Indian Rupees One Hundred and Twenty-Five Crore only) excluding transaction costs, applicable taxes and other incidental and related expenses for Buyback."

The date of opening of the Buyback is Thursday, 21st December, 2023 and the date of closing of the Buyback is Thursday, 28th December, 2023, as per the BSE filing of the Somany Ceramics.

Somany Ceramics Stock Performance & Return: Current market price of Somany Ceramics share on BSE is Rs 708.00 per share with intraday gain of 1.45%. Somany Ceramics shares witnessed a dip of 3% in last 2-weeks. Its market capitalisation is Rs 3007.17 crore. Somany Ceramics shares gained 48% year-to-date, soared 46% in last 1-year, declined 14% in last 2-years, and offered return of 137% in last 3-years. In last 5-years, Somany Ceramics shares surged 116%.

According to Deven Mehata, Equity Research Analyst at Choice Broking, "SOMANYCERA is currently trading at 728 levels, having experienced a pullback from the resistance zone around 767 levels. The stock exhibits a robust support level near 715, closely aligned with its 20-Day Exponential Moving Average (EMA). This support level is crucial as it represents a convergence of technical factors, reinforcing its significance."

Notably, SOMANYCERA is trading above all significant moving averages, emphasizing the inherent strength of the stock near the support levels. This positive positioning suggests that the stock is well-supported and has the potential to resume its upward trajectory. The momentum indicator, having retreated from higher levels of 79, is currently trading at 54. This indicates a cooling off in momentum, providing a brief respite from the intense buying pressure. However, the level of 54 still signifies a reasonably positive momentum, indicating on-going strength in the stock, added Deven Mehata.

A breakout above the resistance at 767 levels could propel SOMANYCERA to higher levels, potentially reaching the all-time high range of 960-970. Investors should closely monitor the price action around the 767 levels, as a decisive move beyond this resistance could trigger a sustained uptrend. For traders and investors, the current levels present an opportunity to assess the stock's behaviour around the support zone of 715. A bounce from this level could signal a continuation of the prevailing uptrend, while a breakdown might warrant a revaluation of the technical landscape, said Deven Mehata.

About: Somany Ceramics Limited (SCL) is among the top 15 global giants of the Ceramic Industry. It was founded in 1968 and emerged a household name in India for tiles and bathware. It exports its products to more than 55 countries across six continents. The company is a complete solution provider in decor solutions with the widest product selection in all categories: ceramic (wall and floor tiles), polished vitrified tiles, glazed vitrified tiles, sanitary ware and bath fittings, according to its official website.

Disclaimer:

The stock highlights decline in last 1-week and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.