Why is Sonal Adhesives Ltd ?
1
Flat results in Sep 25
- ROCE(HY) Lowest at 14.74%
- DEBTORS TURNOVER RATIO(HY) Lowest at 7.21 times
- OPERATING PROFIT TO NET SALES (Q) Lowest at 1.66%
2
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -32.50% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commodity Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sonal Adhesives for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sonal Adhesives
-32.5%
-0.59
54.67%
Sensex
7.21%
0.61
11.73%
Quality key factors
Factor
Value
Sales Growth (5y)
42.23%
EBIT Growth (5y)
22.02%
EBIT to Interest (avg)
1.20
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
1.43
Sales to Capital Employed (avg)
5.34
Tax Ratio
27.46%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.04%
ROE (avg)
65.12%
Valuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
37
Price to Book Value
2.85
EV to EBIT
21.35
EV to EBITDA
14.14
EV to Capital Employed
1.76
EV to Sales
0.34
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.24%
ROE (Latest)
14.57%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Sideways
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bearish
Technical Movement
9What is working for the Company
OPERATING CF(Y)
Highest at Rs 6.90 Cr
NET SALES(9M)
At Rs 95.01 cr has Grown at 20.57%
-6What is not working for the Company
ROCE(HY)
Lowest at 14.74%
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.21 times
OPERATING PROFIT TO NET SALES (Q)
Lowest at 1.66%
PBT LESS OI(Q)
Lowest at Rs -0.26 cr.
EPS(Q)
Lowest at Rs 0.45
Loading Valuation Snapshot...
Here's what is working for Sonal Adhesives
Operating Cash Flow - Annually
Highest at Rs 6.90 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 34.91 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 34.91 cr has Grown at 28.16%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Sonal Adhesives
Operating Profit Margin - Quarterly
Lowest at 1.66%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -0.26 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.45
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 7.21 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






