Why is Sonam Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.42 times
2
With a growth in Net Sales of 66.97%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- ROCE(HY) Highest at 13.28%
- DEBTORS TURNOVER RATIO(HY) Highest at 21.03 times
- NET SALES(Q) Highest at Rs 63.65 cr
3
With ROCE of 14.1, it has a Attractive valuation with a 2.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -100.00%, its profits have risen by 15.6% ; the PEG ratio of the company is 1.9
4
Majority shareholders : Promoters
How much should you buy?
- Overall Portfolio exposure to Sonam should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sonam for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Sonam
4.69%
0.11
42.51%
Sensex
-10.52%
-0.81
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
16.01%
EBIT Growth (5y)
25.78%
EBIT to Interest (avg)
3.79
Debt to EBITDA (avg)
2.21
Net Debt to Equity (avg)
0.30
Sales to Capital Employed (avg)
1.32
Tax Ratio
28.35%
Dividend Payout Ratio
0
Pledged Shares
3.65%
Institutional Holding
0.26%
ROCE (avg)
11.21%
ROE (avg)
11.95%
Valuation Key Factors 
Factor
Value
P/E Ratio
30
Industry P/E
Price to Book Value
3.02
EV to EBIT
19.58
EV to EBITDA
15.79
EV to Capital Employed
2.76
EV to Sales
1.33
PEG Ratio
1.89
Dividend Yield
NA
ROCE (Latest)
14.08%
ROE (Latest)
10.24%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
23What is working for the Company
ROCE(HY)
Highest at 13.28%
DEBTORS TURNOVER RATIO(HY)
Highest at 21.03 times
NET SALES(Q)
Highest at Rs 63.65 cr
PBDIT(Q)
Highest at Rs 5.65 cr.
PBT LESS OI(Q)
Highest at Rs 4.37 cr.
PAT(Q)
Highest at Rs 2.90 cr.
EPS(Q)
Highest at Rs 0.72
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Sonam
Net Sales - Quarterly
At Rs 63.65 cr has Grown at 83.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 34.76 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 4.37 cr has Grown at 155.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1.71 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 63.65 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 5.65 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 4.37 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 2.90 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.72
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 21.03 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio






