Sovereign Diamonds Stock Price Analysis and Quick Research Report. Is Sovereign Diamonds an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Sovereign Diamonds. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Sovereign Diamonds has a PE ratio of -3.26169465793719 which is low and comparatively undervalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Sovereign Diamonds has ROA of 0.0426% which is a bad sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Sovereign Diamonds has a Current ratio of 2.3227.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Sovereign Diamonds has a ROE of 0.0743%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Sovereign Diamonds has a Debt to Equity ratio of 0.5216 which means that the company has low proportion of debt in its capital.

• Sales growth: Sovereign Diamonds has reported revenue growth of -26.2843% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Sovereign Diamonds for the current financial year is 1.79800822146896%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Sovereign Diamonds is Rs 0 and the yield is 0%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Sovereign Diamonds is Rs -8.4312. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Sovereign Diamonds in Ticker for free. Also, one can get the intrinsic value of Sovereign Diamonds by using Valuation Calculators, which are available with a Finology ONE subscription. 

Sovereign Diamonds FAQs

Q1. What is Sovereign Diamonds share price today?
Ans: The current share price of Sovereign Diamonds is Rs 27.5.

Q2. What is the market capitalisation of Sovereign Diamonds?
Ans: Sovereign Diamonds has a market capitalisation of Rs 15.9170055 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Sovereign Diamonds?
Ans: The PE ratio of Sovereign Diamonds is -3.26169465793719 and the P/B ratio of Sovereign Diamonds is 1.30441794499625, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Sovereign Diamonds share?
Ans: The 52-week high share price of Sovereign Diamonds is Rs 80.52, and the 52-week low share price of Sovereign Diamonds is Rs 25.8.

Q5. Does Sovereign Diamonds pay dividends?
Ans: Currently, Sovereign Diamonds does not pay dividends. Dividend yield of Sovereign Diamonds is around 0%.

Q6. What are the face value and book value of Sovereign Diamonds shares?
Ans: The face value of Sovereign Diamonds shares is Rs 10, while the book value per share of Sovereign Diamonds is around Rs 21.0822. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Sovereign Diamonds?
Ans: Sovereign Diamonds has a total debt of Rs 8.8968 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Sovereign Diamonds?
Ans: The ROE of Sovereign Diamonds is 0.0743% and ROCE of Sovereign Diamonds is 4.987%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Sovereign Diamonds a good buy for the long term?
Ans: The Sovereign Diamonds long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Sovereign Diamonds undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Sovereign Diamonds appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Sovereign Diamonds’s financials?
Ans: You can review Sovereign Diamonds’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.