NSEI:SONAMCLOCK

Stock Analysis Report

Executive Summary

Sonam Clock Limited manufactures and sells horological items, clocks, clock movements, and related items under the Sonam brand name in India.

Rewards

PE ratio (10.4x) is below the Indian market (13.4x)

Earnings have grown 32.3% per year over the past 5 years

Risk Analysis

Does not have a meaningful market cap (₹378M)

Has a high level of debt

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Sonam Clock's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SONAMCLOCK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

SONAMCLOCK

0.06%

IN Consumer Durables

-0.8%

IN Market


1 Year Return

-2.6%

SONAMCLOCK

36.5%

IN Consumer Durables

11.1%

IN Market

Return vs Industry: SONAMCLOCK underperformed the Indian Consumer Durables industry which returned 34.8% over the past year.

Return vs Market: SONAMCLOCK underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

SONAMCLOCKIndustryMarket
7 Day-0.7%0.06%-0.8%
30 Day2.0%4.7%-2.3%
90 Dayn/a11.9%2.1%
1 Year-2.6%-2.6%37.3%36.5%13.1%11.1%
3 Yearn/a47.4%45.2%22.9%16.2%
5 Yearn/a95.4%90.7%34.9%22.6%

Price Volatility Vs. Market

How volatile is Sonam Clock's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sonam Clock undervalued compared to its fair value and its price relative to the market?

10.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SONAMCLOCK (₹37.75) is trading above our estimate of fair value (₹25.15)

Significantly Below Fair Value: SONAMCLOCK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SONAMCLOCK is good value based on its PE Ratio (10.4x) compared to the Consumer Durables industry average (22.9x).

PE vs Market: SONAMCLOCK is good value based on its PE Ratio (10.4x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SONAMCLOCK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SONAMCLOCK is good value based on its PB Ratio (1.4x) compared to the IN Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Sonam Clock forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.9%

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 Sonam Clock 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 Sonam Clock performed over the past 5 years?

32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SONAMCLOCK has high quality earnings.

Growing Profit Margin: SONAMCLOCK's current net profit margins (5.9%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: SONAMCLOCK's earnings have grown significantly by 32.3% per year over the past 5 years.

Accelerating Growth: SONAMCLOCK's earnings growth over the past year (13%) is below its 5-year average (32.3% per year).

Earnings vs Industry: SONAMCLOCK earnings growth over the past year (13%) underperformed the Consumer Durables industry 13.9%.


Return on Equity

High ROE: SONAMCLOCK's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sonam Clock's financial position?


Financial Position Analysis

Short Term Liabilities: SONAMCLOCK's short term assets (₹317.8M) exceed its short term liabilities (₹223.6M).

Long Term Liabilities: SONAMCLOCK's short term assets (₹317.8M) exceed its long term liabilities (₹49.0M).


Debt to Equity History and Analysis

Debt Level: SONAMCLOCK's debt to equity ratio (73.3%) is considered high.

Reducing Debt: SONAMCLOCK's debt to equity ratio has reduced from 329.2% to 73.3% over the past 5 years.

Debt Coverage: SONAMCLOCK's debt is well covered by operating cash flow (20.8%).

Interest Coverage: SONAMCLOCK's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: SONAMCLOCK has a high level of physical assets or inventory.

Debt Coverage by Assets: SONAMCLOCK's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Sonam Clock's current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%0.6%markettop25%2.5%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SONAMCLOCK's dividend (2.65%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: SONAMCLOCK's dividend (2.65%) is in the top 25% of dividend payers in the Indian market (2.52%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SONAMCLOCK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SONAMCLOCK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.7%), SONAMCLOCK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Jayeshbhai Shah 0

2.1yrs

Tenure

₹9,600,000

Compensation

Mr. Jayeshbhai Chhabildas Shah is the Chairman at Sonam Clock Limited and serves as its Managing Director since January 29, 2018. 


CEO Compensation Analysis

Compensation vs Market: Jayeshbhai's total compensation ($USD134.24K) is above average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jayeshbhai Shah
Chairman & MD2.1yrs₹9.60m68.7% 259.6m
Amit Vaghajiyani
Chief Financial Officer2yrs₹600.00k0.0010% 3.8k
Deepaben Shah
Whole Time Director2.1yrs₹6.60m4.8% 18.1m
Minaxi Taladiya
Company Secretary & Compliance officer0.8yrsno datano data
Samir Doshi
Head of Marketing0yrsno data0.0010% 3.8k
Jatin Movani
Head of Production0yrsno data0.0010% 3.8k

2.0yrs

Average Tenure

Experienced Management: SONAMCLOCK's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jayeshbhai Shah
Chairman & MD2.1yrs₹9.60m68.7% 259.6m
Deepaben Shah
Whole Time Director2.1yrs₹6.60m4.8% 18.1m
Rutvi Shah
Non-Executive Director2yrs₹600.00kno data
Shreyansh Vora
Non-Executive & Independent Director2.2yrsno datano data
Jigar Mehta
Non-Executive & Independent Director2yrsno datano data

2.0yrs

Average Tenure

Experienced Board: SONAMCLOCK's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SONAMCLOCK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.8%.


Top Shareholders

Company Information

Sonam Clock Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sonam Clock Limited
  • Ticker: SONAMCLOCK
  • Exchange: NSEI
  • Founded: 1996
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: ₹377.802m
  • Shares outstanding: 10.01m
  • Website: https://www.sonamquartz.com

Number of Employees


Location

  • Sonam Clock Limited
  • Survey No. 337/p
  • Morbi Rajkot Highway
  • Morbi
  • Gujarat
  • 363641
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SONAMCLOCKNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2018

Biography

Sonam Clock Limited manufactures and sells horological items, clocks, clock movements, and related items under the Sonam brand name in India. The company offers products, such as alarm time pieces, classy dial clocks, designer clocks, corporate clocks, divine clocks, divine tune clocks, economy clocks, LCD clocks, LED digital clocks, LED lighting clocks, light sensor clocks, musical clocks, office clocks, pendulum clocks, and pendulum musical clocks. It also provides picture God dial clocks, regular clocks, rotating clocks, rotating musical clocks, rotating pendulum musical clocks, SQ series clocks, sweep clocks, sweep office clocks, and table clocks. In addition, the company exports its products. Sonam Clock Limited was founded in 1996 and is based in Morbi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:11
End of Day Share Price2020/02/13 00:00
Earnings2019/09/30
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.