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Last Updated on: 28 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Soma Textiles & Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 27, 2024, 9:10 pm

Market Cap 151 Cr.
Current Price 45.7
High / Low55.3/18.8
Stock P/E41.4
Book Value 47.8
Dividend Yield0.00 %
ROCE2.57 %
ROE1.94 %
Face Value 10.0
PEG Ratio0.74

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Soma Textiles & Industries Ltd

Competitors of Soma Textiles & Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ruby Mills Ltd 961 Cr. 288325/17724.7 1810.61 %7.33 %7.52 % 5.00
Soma Textiles & Industries Ltd 151 Cr. 45.755.3/18.841.4 47.80.00 %2.57 %1.94 % 10.0
Nahar Industrial Enterprises Ltd 602 Cr. 139175/10827.4 2220.00 %2.72 %0.76 % 10.0
Mohota Industries Ltd 6.77 Cr. 4.60/ 99.80.00 %1.19 %1.89 % 10.0
Industry Average571.33 Cr119.3331.17137.650.15%3.45%3.03%8.75

All Competitor Stocks of Soma Textiles & Industries Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales6355200231221
Expenses7597316452232
Operating Profit-1-2-4-2-1-1-6-2-2-1-1-1-1
OPM %-23%-71%-85%-33%-66%-288%-3,987%-77%-62%-75%-59%-41%-78%
Other Income043131140133112223
Interest3544553000000
Depreciation0000000000000
Profit before tax-5-3-5-5-3631131-101122
Tax %22%0%0%0%-34%0%0%0%-286%0%0%0%14%
Net Profit-4-3-5-5-4631131-201119
EPS in Rs-1.12-0.96-1.42-1.40-1.201.769.3839.69-0.740.120.180.255.84

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales323273226170127833826131556
Expenses2942712351661217846281819109
Operating Profit292-10465-8-2-5-5-5-3
OPM %9%1%-4%2%5%6%-21%-7%-41%-33%-96%-59%
Other Income12177879810-2918128
Interest2424232315131313141980
Depreciation161318743321110
Profit before tax1-18-44-18-6-3-16-7-23-1516724
Tax %275%-25%-23%-20%33%139%6%-16%-5%7%1%13%
Net Profit-2-13-34-14-8-8-17-6-21-1616521
EPS in Rs-0.50-4.04-10.17-4.31-2.52-2.49-5.20-1.78-6.51-4.9950.096.39
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-550.00%-161.54%58.82%42.86%0.00%-112.50%64.71%-250.00%23.81%1131.25%-87.27%
Change in YoY Net Profit Growth (%)0.00%388.46%220.36%-15.97%-42.86%-112.50%177.21%-314.71%273.81%1107.44%-1218.52%

Soma Textiles & Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-32%
5 Years:-32%
3 Years:-24%
TTM:9%
Compounded Profit Growth
10 Years:7%
5 Years:16%
3 Years:28%
TTM:-27%
Stock Price CAGR
10 Years:28%
5 Years:74%
3 Years:54%
1 Year:131%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital33333333333333333333333333
Reserves4219-16-31-49-58-75-81-110-1273455125
Borrowings2021991841721231161141121181161721
Other Liabilities49493255537383991121302211
Total Liabilities32730023223016016415516415415287112160
Fixed Assets102714940302825191711333
CWIP2000000000000
Investments000002322222572
Other Assets222228183190130134127143135139828485
Total Assets32730023223016016415516415415287112160

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +27-650162513-18-6-63317026
Cash from Investing Activity +-724229569610204
Cash from Financing Activity +-20-18-55-8-43-2-2-2-2-3-233-18
Net Cash Flow0-0-210-916-141-240-4211

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-173.00-197.00-194.00-168.00-117.00-111.00-122.00-114.00-123.00-121.00-22.00-5.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days54583138141121102132110
Inventory Days139145817750161571222305600
Days Payable64364359131498617913724
Cash Conversion Cycle13016769565023-28-5610335132110
Working Capital Days76111-11-23-107-247-733-1,300-2,829-3,36369-1,081
ROCE %7%-3%-11%-1%2%3%-13%-6%-12%-0%11%3%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters63.68%63.68%63.68%63.68%63.68%63.68%67.77%72.76%72.76%72.76%72.76%72.76%
DIIs0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.04%
Public36.28%36.28%36.28%36.28%36.28%36.28%32.19%27.19%27.19%27.20%27.21%27.20%
No. of Shareholders12,86714,45014,35214,27313,92213,86814,35413,95013,96713,83413,37013,173

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)6.4050.09-4.96-6.54-1.86
Diluted EPS (Rs.)6.4050.09-4.96-6.54-1.86
Cash EPS (Rs.)6.4449.95-4.66-6.08-1.02
Book Value[Excl.RevalReserv]/Share (Rs.)26.6420.28-25.80-20.87-14.37
Book Value[Incl.RevalReserv]/Share (Rs.)26.6420.28-25.80-20.87-14.37
Revenue From Operations / Share (Rs.)1.721.564.383.867.79
PBDIT / Share (Rs.)0.771.94-0.66-1.19-0.18
PBIT / Share (Rs.)0.671.78-0.93-1.58-0.93
PBT / Share (Rs.)7.2650.34-4.62-6.78-2.11
Net Profit / Share (Rs.)6.3549.80-4.92-6.47-1.77
NP After MI And SOA / Share (Rs.)6.3549.80-4.94-6.48-1.78
PBDIT Margin (%)44.67124.07-15.22-30.81-2.43
PBIT Margin (%)39.06114.01-21.25-40.87-11.97
PBT Margin (%)421.063218.23-105.47-175.54-27.08
Net Profit Margin (%)368.303183.54-112.45-167.52-22.70
NP After MI And SOA Margin (%)368.303183.54-112.81-167.90-22.86
Return on Networth / Equity (%)23.82245.480.000.000.00
Return on Capital Employeed (%)2.486.98-27.85-13.47-4.88
Return On Assets (%)18.91190.35-10.83-14.02-3.60
Long Term Debt / Equity (X)0.010.06-1.13-1.55-2.30
Total Debt / Equity (X)0.010.06-1.13-1.55-2.30
Asset Turnover Ratio (%)0.050.040.090.080.16
Current Ratio (X)1.832.300.350.370.28
Quick Ratio (X)1.832.300.350.350.25
Inventory Turnover Ratio (X)0.000.003.361.532.87
Interest Coverage Ratio (X)5.050.79-0.15-0.28-0.04
Interest Coverage Ratio (Post Tax) (X)-1.550.51-0.28-0.30-0.15
Enterprise Value (Cr.)100.25130.6676.2999.2697.64
EV / Net Operating Revenue (X)17.5125.145.247.743.77
EV / EBITDA (X)39.1820.26-34.44-25.11-155.20
MarketCap / Net Operating Revenue (X)19.3223.441.631.490.27
Price / BV (X)1.251.81-0.27-0.27-0.15
Price / Net Operating Revenue (X)19.3323.451.641.490.27
EarningsYield0.191.36-0.68-1.13-0.82

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Soma Textiles & Industries Ltd as of November 28, 2024 is: 39.16

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 28, 2024, Soma Textiles & Industries Ltd is Overvalued by 14.31% compared to the current share price 45.70

Intrinsic Value of Soma Textiles & Industries Ltd as of November 28, 2024 is: 61.00

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 28, 2024, Soma Textiles & Industries Ltd is Undervalued by 33.48% compared to the current share price 45.70

Last 5 Year EPS CAGR: 55.77%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of -0.20 and average Dividend Yield of 15.80%.
  2. The stock has a low average Working Capital Days of -72.67, which is a positive sign.
  3. The company has shown consistent growth in sales (108.75 cr) and profit (3.50 cr) over the years.
  1. The stock has a low average ROCE of -1.67%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 65.92, which may not be favorable.
  3. The company has higher borrowings (113.54) compared to reserves (-20.92), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Soma Textiles & Industries Ltd:
    1. Net Profit Margin: 368.3%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 2.48% (Industry Average ROCE: 3.45%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 23.82% (Industry Average ROE: 3.03%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): -1.55
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.83
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 41.4 (Industry average Stock P/E: 23.38)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Soma Textiles & Industries Ltd. is a Public Limited Listed company incorporated on 29/03/1940 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L51909WB1940PLC010070 and registration number is 010070. Currently Company is involved in the business activities of Finishing of cotton and blended cotton textiles.. Company’s Total Operating Revenue is Rs. 14.55 Cr. and Equity Capital is Rs. 33.23 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Composite Mills2, Red Cross Place, Kolkata West Bengal 700001investors@somatextiles.com
http://www.somatextiles.com
Management
NamePosition Held
Mr. S K SomanyNon Executive Chairman
Mr. A K SomanyManaging Director
Mr. S B BhatWhole Time Executive Director
Mr. B K HurkatInd. Non-Executive Director
Mr. M H ShahInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Soma Textiles & Industries Ltd?

The latest intrinsic value of Soma Textiles & Industries Ltd as on 28 November 2024 is ₹39.16, which is 14.31% lower than the current market price of ₹45.70. The stock has a market capitalization of 151 Cr. and recorded a high/low of ₹55.3/18.8 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹125 Cr and total liabilities of ₹160 Cr.

What is the Market Cap of Soma Textiles & Industries Ltd?

The Market Cap of Soma Textiles & Industries Ltd is 151 Cr..

What is the current Stock Price of Soma Textiles & Industries Ltd as on 28 November 2024?

The current stock price of Soma Textiles & Industries Ltd as on 28 November 2024 is ₹45.7.

What is the High / Low of Soma Textiles & Industries Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Soma Textiles & Industries Ltd stocks is 55.3/18.8.

What is the Stock P/E of Soma Textiles & Industries Ltd?

The Stock P/E of Soma Textiles & Industries Ltd is 41.4.

What is the Book Value of Soma Textiles & Industries Ltd?

The Book Value of Soma Textiles & Industries Ltd is 47.8.

What is the Dividend Yield of Soma Textiles & Industries Ltd?

The Dividend Yield of Soma Textiles & Industries Ltd is 0.00 %.

What is the ROCE of Soma Textiles & Industries Ltd?

The ROCE of Soma Textiles & Industries Ltd is 2.57 %.

What is the ROE of Soma Textiles & Industries Ltd?

The ROE of Soma Textiles & Industries Ltd is 1.94 %.

What is the Face Value of Soma Textiles & Industries Ltd?

The Face Value of Soma Textiles & Industries Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Soma Textiles & Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE