Recent Price Movement and Market Context
The stock recorded an intraday low of Rs.121.4, representing a 2.88% drop on the day and underperforming its own sector, Rubber Products, which fell by 5.91%. Despite this, Somi Conveyor Beltings outperformed its sector by 4.31% on the day, reflecting a relatively less severe decline. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In comparison, the broader market has shown resilience. The Sensex opened lower at 85,640.05, down 0.14%, but is trading just 0.49% below its 52-week high of 86,159.02. Mid-cap stocks have been leading the market with a modest gain of 0.08% in the BSE Mid Cap index. Somi Conveyor Beltings, however, has not mirrored this positive trend, continuing its slide.
Long-Term Performance and Valuation Metrics
Over the past year, Somi Conveyor Beltings has delivered a negative return of 41.25%, a stark contrast to the Sensex’s positive 8.18% performance over the same period. The stock’s 52-week high was Rs.218.4, indicating a substantial decline of nearly 44.4% from that peak.
The company’s market capitalisation is graded at 4, reflecting its micro-cap status within the industrial manufacturing sector. Its Mojo Score stands at 28.0, with a recent downgrade from a 'Sell' to a 'Strong Sell' rating on 29 December 2025, underscoring the deteriorating outlook based on fundamental and price action factors.
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Financial Performance Highlights
The company’s quarterly net sales have declined sharply, with the latest figure at Rs.19.72 crores, down 29.7% compared to the previous four-quarter average. Profit after tax (PAT) for the latest six months stands at Rs.2.06 crores, reflecting a contraction of 33.55%. The PBDIT for the quarter has also reached a low of Rs.1.96 crores, indicating pressure on earnings before interest, depreciation, and taxes.
Despite these declines, Somi Conveyor Beltings maintains a relatively strong ability to service its debt, with a Debt to EBITDA ratio of 1.46 times. This suggests manageable leverage levels in relation to earnings, which is a positive aspect amid the current challenges.
Valuation and Efficiency Metrics
The company’s return on capital employed (ROCE) is recorded at 8.9%, which, while modest, indicates some efficiency in generating returns from its capital base. The enterprise value to capital employed ratio stands at 1.8, signalling an attractive valuation relative to its capital structure. This valuation is discounted compared to the average historical valuations of its peers within the industrial manufacturing sector.
However, the profitability trend remains subdued, with profits falling by 22.7% over the past year, further contributing to the stock’s weak performance.
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Shareholding and Sectoral Position
The majority shareholding in Somi Conveyor Beltings is held by promoters, indicating concentrated ownership. The company operates within the industrial manufacturing sector, specifically focusing on conveyor beltings and related rubber products. This sector has experienced a decline of 5.91% recently, reflecting broader pressures that have also impacted the company’s stock price.
While the Sensex and mid-cap indices have shown relative strength, Somi Conveyor Beltings’ performance has lagged, highlighting sector-specific and company-level factors influencing investor sentiment and valuation.
Summary of Key Metrics
To summarise, Somi Conveyor Beltings Ltd’s stock has reached a 52-week low of Rs.121.4, reflecting a year-long decline of 41.25%. The company’s financial results reveal a contraction in sales and profits, with net sales down 29.7% and PAT down 33.55% in recent periods. Despite a manageable debt profile and attractive valuation ratios, the stock’s momentum remains weak, trading below all major moving averages and underperforming its sector and the broader market.
These factors have contributed to a downgrade in the company’s Mojo Grade from 'Sell' to 'Strong Sell' as of late December 2025, underscoring the challenges faced by the stock in maintaining price stability and growth.
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