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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 62 (OpenAI - Gpt-5.6Sol)
Rating:62Neutral
Price Target:―
Action:Reiterated
Date:09/16/26
The score is primarily driven by strong revenue growth and an improving balance sheet, but it is held back by sharp 2026 margin compression and weaker cash conversion. Limited valuation support (high P/E and modest yield) and the absence of technical indicators further constrain confidence.
Positive Factors
Strong Revenue Growth
Strong and accelerating revenue growth indicates that Sonam is expanding its business at a meaningful pace. If this trajectory continues, the larger revenue base can support higher absolute earnings, broaden operating scale, and provide resources for continued investment over the next several quarters.
Negative Factors
Material Margin Compression
Sharp margin compression means rapid revenue growth is producing less profit from each unit of sales. If sustained, weaker gross and net margins could limit earnings leverage, reduce the benefit of scale, and make future profitability more sensitive to costs, pricing, or changes in product mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Strong and accelerating revenue growth indicates that Sonam is expanding its business at a meaningful pace. If this trajectory continues, the larger revenue base can support higher absolute earnings, broaden operating scale, and provide resources for continued investment over the next several quarters.
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, along with improving leverage (debt-to-equity down to ~0.30). Offsetting this, 2026 margins compressed meaningfully (gross ~15%, net ~4.3%) and cash conversion weakened (FCF ~68% of net income), raising 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 Revenue1.99B1.71B1.04B876.39M822.06M870.71M
Gross Profit255.51M256.72M239.98M239.52M184.10M201.25M
EBITDA174.11M148.32M134.23M125.01M88.69M86.38M
Net Income90.02M73.22M63.33M55.16M40.02M33.97M
Balance Sheet
Total Assets0.001.15B977.22M861.53M857.64M911.16M
Cash, Cash Equivalents and Short-Term Investments2.29M2.29M34.13M1.54M497.00K1.97M
Total Debt0.00212.26M183.91M221.56M257.67M298.38M
Total Liabilities-714.77M433.86M347.27M294.91M335.14M428.67M
Stockholders Equity714.77M714.77M629.95M566.62M522.50M482.49M
Cash Flow
Free Cash Flow3.83M43.27M86.72M63.14M63.98M15.71M
Operating Cash Flow13.27M63.98M104.04M73.45M81.11M104.99M
Investing Cash Flow-17.12M-72.98M-43.40M-7.70M-17.09M-89.20M
Financing Cash Flow2.64M7.51M-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
₹3.70B9.75―17.01%-36.83%-1.24%
62
Neutral
―30.62―0.44%67.27%38.88%
62
Neutral
₹4.16B9.01―0.25%――
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
₹1.85B19.02―0.65%0.34%26.39%
43
Neutral
₹1.83B-5.08―0.47%-11.34%7.18%
* 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
79.95
-13.62
-14.56%
IN:NDL
Nandan Denim Limited
2.57
-0.71
-21.65%
IN:VIPCLOTHNG
VIP Clothing Limited
20.49
-13.43
-39.59%
IN:ZODIACLOTH
Zodiac Clothing Company Limited
66.60
-31.64
-32.21%

Sonam Ltd Corporate Events

Sonam Limited Files Integrated Q1 FY2026 Results with NSE Under SEBI Norms
Jul 15, 2026
Sonam Limited has submitted its integrated financial filing for the quarter ended June 30, 2026 to the National Stock Exchange of India, in compliance with the latest SEBI circular on financial disclosures. The filing is available on the company&#...
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: Sep 16, 2026