NSEI:SONAMCLOCK

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Sonam Clock Limited manufactures and sells horological items, clocks, clock movements, and related items in India. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

SONAMCLOCK

0.5%

IN Consumer Durables

-0.6%

IN Market


1 Year Return

63.6%

SONAMCLOCK

5.4%

IN Consumer Durables

2.2%

IN Market

Return vs Industry: SONAMCLOCK exceeded the Indian Consumer Durables industry which returned 5.4% over the past year.

Return vs Market: SONAMCLOCK exceeded the Indian Market which returned 2.2% over the past year.


Shareholder returns

SONAMCLOCKIndustryMarket
7 Day0%0.5%-0.6%
30 Day3.3%-2.5%0.2%
90 Day37.3%5.9%6.7%
1 Year63.6%63.6%5.9%5.4%3.9%2.2%
3 Yearn/a7.0%5.5%2.6%-2.4%
5 Yearn/a54.4%50.6%41.3%30.8%

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?

22.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SONAMCLOCK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SONAMCLOCK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SONAMCLOCK is good value based on its PE Ratio (22.1x) compared to the IN Consumer Durables industry average (27.9x).

PE vs Market: SONAMCLOCK is poor value based on its PE Ratio (22.1x) compared to the Indian market (16.3x).


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 overvalued based on its PB Ratio (2.3x) compared to the IN Consumer Durables industry average (1.2x).


Next Steps

Future Growth

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

39.2%

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?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SONAMCLOCK has a high level of non-cash earnings.

Growing Profit Margin: SONAMCLOCK's current net profit margins (4.8%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: SONAMCLOCK's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: SONAMCLOCK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SONAMCLOCK had negative earnings growth (-23%) over the past year, making it difficult to compare to the Consumer Durables industry average (-23%).


Return on Equity

High ROE: SONAMCLOCK's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Sonam Clock's financial position?


Financial Position Analysis

Short Term Liabilities: SONAMCLOCK's short term assets (₹333.7M) exceed its short term liabilities (₹238.4M).

Long Term Liabilities: SONAMCLOCK's short term assets (₹333.7M) exceed its long term liabilities (₹95.6M).


Debt to Equity History and Analysis

Debt Level: SONAMCLOCK's debt to equity ratio (86%) is considered high.

Reducing Debt: SONAMCLOCK's debt to equity ratio has reduced from 325.8% to 86% over the past 5 years.

Debt Coverage: SONAMCLOCK's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: SONAMCLOCK's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SONAMCLOCK is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SONAMCLOCK'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?

2.7yrs

Average management tenure


CEO

Jayeshbhai Shah

2.75yrs

Tenure

₹8,400,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Jayeshbhai's total compensation ($USD114.52K) is above average for companies of similar size in the Indian market ($USD56.07K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jayeshbhai Shah
Chairman2.75yrs₹8.40m68.82%
₹ 433.9m
Amit Vaghajiyani
Chief Financial Officer2.67yrs₹600.00k0.0010%
₹ 6.3k
Deepaben Shah
Director of Admin & Whole Time Director2.75yrs₹6.00m4.8%
₹ 30.2m
Milan Ganatra
Company Secretary & Compliance Officer0.67yr₹240.00kno data
Samir Doshi
Head of Marketingno data₹480.00k0.0010%
₹ 6.3k
Jatin Movani
Head of Productionno data₹600.00k0.0010%
₹ 6.3k
Harshil Shah
Head of R&Dno datano datano data

2.7yrs

Average Tenure

41yo

Average Age

Experienced Management: SONAMCLOCK's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jayeshbhai Shah
Chairman2.75yrs₹8.40m68.82%
₹ 433.9m
Deepaben Shah
Director of Admin & Whole Time Director2.75yrs₹6.00m4.8%
₹ 30.2m
Rutvi Shah
Non-Executive Director2.67yrs₹600.00kno data
Shreyansh Vora
Non-Executive & Independent Director2.83yrs₹15.00kno data
Jigar Mehta
Non-Executive & Independent Director2.67yrs₹15.00kno data

2.7yrs

Average Tenure

Experienced Board: SONAMCLOCK's board of directors are not considered experienced ( 2.7 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


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: ₹630.504m
  • 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 in India. The company offers products, such as alarm time pieces, dial clocks, designer clocks, divi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 12:39
End of Day Share Price2020/10/09 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.