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Sonam Ltd (IN:SONAMLTD)
:SONAMLTD
India Market
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Sonam Ltd (SONAMLTD) AI Stock Analysis

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IN:SONAMLTD

Sonam Ltd

(SONAMLTD)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
Action:Downgraded
Date:06/16/26
The score is primarily supported by strong revenue growth and a healthier, improving balance sheet. It is held back by 2026 margin compression and weaker cash conversion, and further tempered by a high P/E that implies limited valuation cushion; technicals could not be assessed due to missing indicators.
Positive Factors
Revenue Growth
Sustained high revenue growth indicates expanding market penetration and product demand, creating a larger base for future profitability. Over 2–6 months this supports durable scale advantages, potential operating-leverage benefits, and stronger bargaining power with suppliers and channels if growth persists.
Negative Factors
Margin Compression
Meaningful margin erosion in 2026 weakens the firm's ability to convert revenue into durable profits. If driven by structural cost increases, pricing pressure, or adverse mix, compressed margins can limit return on invested capital and make it harder to fund growth without improving pricing power or cost structure.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained high revenue growth indicates expanding market penetration and product demand, creating a larger base for future profitability. Over 2–6 months this supports durable scale advantages, potential operating-leverage benefits, and stronger bargaining power with suppliers and channels if growth persists.
Read all positive factors

Sonam Ltd (SONAMLTD) vs. iShares MSCI India ETF (INDA)

Sonam Ltd Business Overview & Revenue Model

Company Description
Sonam Limited, an Indian enterprise founded in 1996, focuses on the production and commercial distribution of diverse timekeeping devices and their associated components. With its headquarters located in Morbi, India, the company offers an extensi...

Sonam Ltd Financial Statement Overview

Summary
Strong and accelerating revenue growth and rising net income support the score, alongside improving leverage (debt-to-equity down to ~0.30). Offsetting this, 2026 saw meaningful margin compression (gross ~15%, net ~4.3%) and weaker cash conversion (FCF ~68% of net income), raising some concerns about earnings quality and sustainability.
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.19B1.71B1.04B876.39M822.06M870.71M
Gross Profit272.38M256.72M239.98M239.52M184.10M201.25M
EBITDA120.01M148.32M134.23M125.01M88.69M86.38M
Net Income64.81M73.22M63.33M55.16M40.02M33.97M
Balance Sheet
Total Assets0.001.15B977.22M861.53M857.64M911.16M
Cash, Cash Equivalents and Short-Term Investments34.14M2.29M34.13M1.54M497.00K1.97M
Total Debt0.00212.26M183.91M221.56M257.67M298.38M
Total Liabilities-629.95M433.86M347.27M294.91M335.14M428.67M
Stockholders Equity629.95M714.77M629.95M566.62M522.50M482.49M
Cash Flow
Free Cash Flow0.0043.27M86.72M63.14M63.98M15.71M
Operating Cash Flow0.0063.98M104.04M73.45M81.11M104.99M
Investing Cash Flow0.00-72.98M-43.40M-7.70M-17.09M-89.20M
Financing Cash Flow0.007.51M-58.40M-64.73M-65.50M-16.95M

Sonam Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹4.08B10.8617.01%-36.83%-1.24%
63
Neutral
35.980.46%67.27%38.88%
62
Neutral
₹4.82B10.350.22%9.35%-20.51%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
₹1.99B-5.510.47%-11.34%7.18%
52
Neutral
₹1.86B19.190.65%0.34%26.39%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SONAMLTD
Sonam Ltd
IN:BRFL
Bombay Rayon Fashions Limited
IN:DONEAR
Donear Industries Limited
92.64
-2.87
-3.00%
IN:NDL
Nandan Denim Limited
2.83
-0.71
-20.06%
IN:VIPCLOTHNG
VIP Clothing Limited
20.60
-13.23
-39.11%
IN:ZODIACLOTH
Zodiac Clothing Company Limited
72.48
-25.23
-25.82%

Sonam Ltd Corporate Events

Taarak Mehta Ka Ooltah Chashmah Defies IPL to Hold OTT Stronghold
May 31, 2026
Taarak Mehta Ka Ooltah Chashmah, produced under Sonam Ltd’s associated entertainment portfolio, continues to rank among India’s most-watched family properties across TV and OTT, even during the IPL season. The 18-year-old series, known...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 16, 2026