NSEI:SOMATEX

Stock Analysis Report

Soma Textiles & Industries

Executive Summary

Soma Textiles & Industries Limited manufactures and sells textile fabrics in India.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Soma Textiles & Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOMATEX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.6%

SOMATEX

-2.4%

IN Luxury

-3.0%

IN Market


1 Year Return

-61.5%

SOMATEX

-26.9%

IN Luxury

-29.2%

IN Market

Return vs Industry: SOMATEX underperformed the Indian Luxury industry which returned -26.9% over the past year.

Return vs Market: SOMATEX underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

SOMATEXIndustryMarket
7 Day-2.6%-2.4%-3.0%
30 Day-9.8%-28.4%-26.9%
90 Day-43.9%-25.6%-28.5%
1 Year-61.5%-61.5%-26.2%-26.9%-27.7%-29.2%
3 Year-85.2%-85.2%0.8%-1.6%-15.2%-19.9%
5 Year-31.5%-31.5%43.7%38.6%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is Soma Textiles & Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Soma Textiles & Industries undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Soma Textiles & Industries is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Soma Textiles & Industries has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SOMATEX’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Soma Textiles & Industries regulatory filings.
  • Explore potentially undervalued companies in the Consumer Durables industry.

Future Growth

How is Soma Textiles & Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.9%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Soma Textiles & Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Soma Textiles & Industries performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOMATEX is currently unprofitable.

Growing Profit Margin: SOMATEX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOMATEX is unprofitable, but has reduced losses over the past 5 years at a rate of 11.4% per year.

Accelerating Growth: Unable to compare SOMATEX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SOMATEX is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (6.4%).


Return on Equity

High ROE: SOMATEX's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Soma Textiles & Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SOMATEX has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SOMATEX has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SOMATEX has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SOMATEX's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: SOMATEX has a low level of unsold assets or inventory.

Debt Coverage by Assets: SOMATEX has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SOMATEX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: SOMATEX has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -21.9% each year


Next Steps

Dividend

What is Soma Textiles & Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SOMATEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SOMATEX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOMATEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOMATEX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOMATEX's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average board tenure


CEO

Arvind Somany (63yo)

no data

Tenure

₹3,392,060

Compensation

Mr. Arvind Kumar Somany has been the Managing Director of Soma Textiles & Industries since January 22, 1988 and also serves as its Chief Executive Officer. Mr. Somany has over 30 years experience with him  ...


CEO Compensation Analysis

Compensation vs Market: Arvind's total compensation ($USD45.00K) is about average for companies of similar size in the Indian market ($USD48.50K).

Compensation vs Earnings: Arvind's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Arvind Somany
MD, CEO & Executive Non-Independent Directorno data₹3.39m7.43% 5.1m
Shrikant Bhat
Whole-time Director12.17yrs₹3.53mno data
Surendra Kumar Somany
Non-Executive Chairmanno data₹10.00k13.22% 9.0m
Brij Kishore Hurkat
Non-Executive & Independent Director11.17yrs₹10.00kno data
Nisha Singh
Non-Executive Independent Director5.08yrs₹2.50kno data
Malay Shah
Non-Executive Independent Director5.08yrs₹10.00kno data

8.1yrs

Average Tenure

70yo

Average Age

Experienced Board: SOMATEX's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Soma Textiles & Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Soma Textiles & Industries Limited
  • Ticker: SOMATEX
  • Exchange: NSEI
  • Founded: 1940
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹68.378m
  • Shares outstanding: 33.03m
  • Website: https://www.somatextiles.com

Number of Employees


Location

  • Soma Textiles & Industries Limited
  • Rakhial Road
  • Ahmedabad
  • Gujarat
  • 380023
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521034BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002
SOMATEXNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2002

Biography

Soma Textiles & Industries Limited manufactures and sells textile fabrics in India. It offers denim fabrics, garments, and piece dyed fabrics, as well as cotton yarns. The company was formerly known as R.B. Rodda & Co. Ltd. and changed its name to Soma Textiles & Industries Limited in January 1992. Soma Textiles & Industries Limited was founded in 1940 and is headquartered in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:04
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.