Sonam Stock Price Analysis and Quick Research Report. Is Sonam 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 Sonam. 

• 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). Sonam has a PE ratio of 26.9243519193794 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. Sonam has ROA of 6.8881% 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. Sonam has a Current ratio of 1.6247.

• 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. Sonam has a ROE of 13.3283%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Sonam has a Debt to Equity ratio of 0.3629 which means that the company has low proportion of debt in its capital.

• Sales growth: Sonam has reported revenue growth of 18.8275% which is fair in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Sonam for the current financial year is 11.5966271969456%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Sonam 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 Sonam is Rs 1.5083. The higher the EPS, the better it is for investors. 

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

Sonam FAQs

Q1. What is Sonam share price today?
Ans: The current share price of Sonam is Rs 40.61.

Q2. What is the market capitalisation of Sonam?
Ans: Sonam has a market capitalisation of Rs 162.569952 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Sonam?
Ans: The PE ratio of Sonam is 26.9243519193794 and the P/B ratio of Sonam is 3.07295331925874, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Sonam share?
Ans: The 52-week high share price of Sonam is Rs 96.7, and the 52-week low share price of Sonam is Rs 37.

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

Q6. What are the face value and book value of Sonam shares?
Ans: The face value of Sonam shares is Rs 5, while the book value per share of Sonam is around Rs 13.2153. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Sonam?
Ans: Sonam has a total debt of Rs 18.391 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Sonam?
Ans: The ROE of Sonam is 13.3283% and ROCE of Sonam is 15.8685%. 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 Sonam a good buy for the long term?
Ans: The Sonam 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 Sonam undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Sonam appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

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