Soma Textiles & Industries Ltd (SOMATEX) AI Stock Analysis

• Market Cap: ₹3.62B
• Dividend Yield: N/A
• Average Volume (3M): 21.64K
• Price to Earnings (P/E): 61.3
• Beta (1Y): 0.94
• Revenue Growth: -19.83%
• EPS Growth: -96.76%
• Country: IN
• Employees: 26
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.59
• Shares Outstanding: 33,033,000
• 10 Day Avg. Volume: 12,859
• 30 Day Avg. Volume: 21,642
• PEG Ratio: <0.01
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 13.07
• P/FCF Ratio: -14.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ₹110.00 ▼(-22.62% Downside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Soma Textiles & Industries Ltd has a mixed outlook. The most significant factor is its financial performance, which shows potential but is hindered by operational inefficiencies. Technical analysis indicates a positive trend, but valuation concerns due to a high P/E ratio limit the stock's attractiveness.

Positive Factors

Strong revenue growth

Very large reported revenue growth indicates material top-line expansion and stronger market traction versus prior periods. Durable top-line gains provide scope to scale operations, fund margin-improving investments, and build bargaining power with suppliers over the next several months.

Conservative leverage / strong equity position

Low leverage and a healthy equity base give the company financial flexibility to absorb shocks, pursue capex or working capital needs, and avoid costly refinancing. This stability supports sustainable operations and strategic choices over a multi-quarter horizon.

Improving cash generation versus earnings

A healthy OCF-to-net-income ratio signals better cash conversion of reported profits, reducing reliance on external funding. Even with volatility, improved cash conversion supports reinvestment, working capital management and debt service capacity over the medium term.

Negative Factors

Negative operating (EBIT) margins

Negative EBIT margins show core operations remain loss-making before non-operating items. Structural cost or efficiency shortfalls must be resolved to sustain profits; otherwise margin recovery will be fragile and constrain long-term free cash flow and reinvestment capacity.

Volatile cash flows and falling free cash flow

Large swings in operating cash flow and a recent FCF decline make planning and capital allocation difficult. Persistent volatility raises financing and liquidity risk, limiting the company’s ability to invest consistently or absorb demand shocks over the coming quarters.

Earnings quality and historical losses

Severe EPS decline and prior losses that eroded equity suggest earnings are volatile and may be influenced by one-offs or inconsistent operations. This weakens forecasting reliability and heightens execution risk for durable margin and return improvements.

Soma Textiles & Industries Ltd Business Overview & Revenue Model

Company Description

Soma Textiles & Industries Limited manufactures and sells textile fabrics in India. It offers cotton yarn, shirting, denim fabrics, garments, and piece-dyed fabrics. 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 incorporated in 1940 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Soma Textiles & Industries Ltd generates revenue primarily through the production and sale of various textile products, including yarns, fabrics, and garments. The company capitalizes on its ability to supply both raw materials and finished goods, allowing it to capture value at multiple stages of the textile production process. Key revenue streams include direct sales to wholesalers, retailers, and exporters, as well as long-term contracts with major clothing brands and manufacturers. Additionally, SOMATEX benefits from strategic partnerships with suppliers and distributors, which enhance its market reach and operational efficiency. The company's focus on quality and sustainable practices also allows it to command premium pricing for its products, contributing positively to its overall earnings.

Soma Textiles & Industries Ltd Financial Statement Overview

Summary

Soma Textiles & Industries Ltd shows mixed financial performance. Positive revenue growth and recent profitability improvements are overshadowed by operational inefficiencies and cash flow volatility. The balance sheet is stable, but the company must enhance operational margins and maintain consistent cash flow.

Income Statement

Soma Textiles & Industries Ltd has shown a mixed performance in its income statement. The company has a positive net profit margin, but EBIT margins are negative, indicating operational challenges. Revenue growth is positive, which is a bright spot, but the company needs to address its operating inefficiencies to improve profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a positive equity ratio, which provides stability. However, the debt-to-equity ratio is low, suggesting the company effectively manages its leverage. Return on equity is high due to recent profitability improvements, but historical losses have impacted equity levels.

Cash Flow

The cash flow statement shows volatility with significant swings in operating cash flow, indicating potential cash management challenges. Despite a recent decrease in free cash flow, the operating cash flow to net income ratio is healthy, suggesting that cash generation has improved relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	101.50M	94.90M	57.27M	47.91M	139.63M	128.25M
Gross Profit	1.90M	1.60M	-546.00K	-1.32M	6.06M	25.72M
EBITDA	713.50M	688.70M	249.42M	1.76B	42.79M	-73.28M
Net Income	717.00M	692.70M	210.92M	1.65B	-164.17M	-215.34M
Balance Sheet
Total Assets	0.00	1.62B	1.12B	869.19M	1.52B	1.54B
Cash, Cash Equivalents and Short-Term Investments	951.20M	951.40M	350.35M	10.71M	445.12M	278.20M
Total Debt	0.00	29.10M	16.24M	95.30M	1.04B	1.10B
Total Liabilities	-1.58B	38.80M	229.73M	117.75M	2.37B	2.23B
Stockholders Equity	1.58B	1.58B	885.27M	751.44M	-857.17M	-693.43M
Cash Flow
Free Cash Flow	0.00	-87.10M	235.83M	1.70B	329.00M	-60.77M
Operating Cash Flow	0.00	-59.60M	259.29M	1.70B	330.96M	-60.57M
Investing Cash Flow	0.00	-5.40M	35.37M	202.57M	96.18M	61.27M
Financing Cash Flow	0.00	-36.50M	-181.67M	-2.33B	-29.16M	-22.92M

Soma Textiles & Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOMATEX, the sentiment is Negative. The current price of 142.15 is above the 20-day moving average (MA) of 115.76, above the 50-day MA of 121.16, and above the 200-day MA of 93.88, indicating a neutral trend. The MACD of -1.12 indicates Positive momentum. The RSI at 39.44 is Neutral, neither overbought nor oversold. The STOCH value of 0.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOMATEX.

Soma Textiles & Industries Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPAL	67 Neutral	₹17.12B	16.32	―	0.28%	34.25%	28.44%
NDL	65 Neutral	₹3.53B	35.76	―	―	45.69%	-26.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SOMATEX	50 Neutral	₹3.62B	61.26	―	―	-19.83%	-96.76%
INDTERRAIN	48 Neutral	₹1.49B	17.32	―	―	-5.67%	71.26%

Soma Textiles & Industries Ltd Corporate Events

Soma Textiles Closes Trading Window Ahead of Q3 FY2025 Results

Soma Textiles & Industries Limited, an Indian textiles-sector company with listed securities on NSE and BSE, has announced a scheduled closure of its trading window under its insider trading compliance framework. In line with SEBI (Prohibition of Insider Trading) Regulations, 2015 and the company’s code of conduct, the firm has closed its trading window for insiders and designated persons from 1 January 2026 until 48 hours after the announcement of its unaudited financial results for the third quarter ended 31 December 2025, underscoring its adherence to regulatory norms and governance standards around handling of unpublished price-sensitive information.