Sona Machinery Stock Price Analysis and Quick Research Report. Is Sona Machinery 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 Sona Machinery. 

• 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). Sona Machinery has a PE ratio of 25.6565584577558 which is high and comparatively overvalued.

• 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. Sona Machinery has ROA of 4.2721% 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. Sona Machinery has a Current ratio of 2.5369.

• 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. Sona Machinery has a ROE of 5.7805%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Sona Machinery has a Debt to Equity ratio of 0.0351 which means that the company has low proportion of debt in its capital.

• Sales growth: Sona Machinery has reported revenue growth of -0.3997% 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 Sona Machinery for the current financial year is 6.60150743497949%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Sona Machinery 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 Sona Machinery is Rs 2.8063. The higher the EPS, the better it is for investors. 

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

Sona Machinery FAQs

Q1. What is Sona Machinery share price today?
Ans: The current share price of Sona Machinery is Rs 72.

Q2. What is the market capitalisation of Sona Machinery?
Ans: Sona Machinery has a market capitalisation of Rs 98.8128 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Sona Machinery?
Ans: The PE ratio of Sona Machinery is 25.6565584577558 and the P/B ratio of Sona Machinery is 1.43619408567297, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Sona Machinery share?
Ans: The 52-week high share price of Sona Machinery is Rs 167, and the 52-week low share price of Sona Machinery is Rs 67.

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

Q6. What are the face value and book value of Sona Machinery shares?
Ans: The face value of Sona Machinery shares is Rs 10, while the book value per share of Sona Machinery is around Rs 50.1325. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Sona Machinery?
Ans: Sona Machinery has a total debt of Rs 2.4166 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Sona Machinery?
Ans: The ROE of Sona Machinery is 5.7805% and ROCE of Sona Machinery is 8.0431%. 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 Sona Machinery a good buy for the long term?
Ans: The Sona Machinery 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 Sona Machinery undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Sona Machinery appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

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