Soma Textiles & Industries Ltd (SOMATEX) AI Stock Analysis

• Market Cap: ₹4.25B
• Dividend Yield: N/A
• Average Volume (3M): 21.64K
• Price to Earnings (P/E): 143.6
• Beta (1Y): 0.84
• Revenue Growth: -19.83%
• EPS Growth: -96.76%
• Country: IN
• Employees: 26
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.19
• 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: ₹125.00 ▼(-12.06% Downside)

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

Business Model Strength

Strategic partnerships enhance market reach and operational efficiency, supporting a robust business model that captures value across the supply chain.

Sustainable Practices

Commitment to sustainability and quality enhances brand reputation and pricing power, contributing to long-term competitive advantage.

Balance Sheet Health

A strong equity position provides financial stability and flexibility, supporting long-term growth and resilience against market fluctuations.

Negative Factors

Operational Inefficiencies

Operational challenges hinder margin expansion and profitability, which could limit the company's ability to capitalize on growth opportunities.

Cash Flow Volatility

Volatile cash flow can strain liquidity and limit investment in growth initiatives, impacting long-term financial health and stability.

Negative EBIT Margins

Negative EBIT margins reflect inefficiencies that may undermine profitability and competitive positioning, necessitating operational 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 offset by operational inefficiencies and cash flow volatility. The balance sheet is stable, but operational margins need enhancement.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Neutral
• Last Price: 142.15
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 142.15 is above the 20-day moving average (MA) of 125.39, above the 50-day MA of 128.23, and above the 200-day MA of 80.65, indicating a neutral trend. The MACD of 3.86 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 6.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹17.10B	15.47	―	0.28%	34.25%	28.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NDL	61 Neutral	₹4.21B	10.97	―	―	45.69%	-26.26%
AARVEEDEN	53 Neutral	₹3.64B	17.94	―	―	-48.16%	-1.10%
SOMATEX	50 Neutral	₹4.25B	143.64	―	―	-19.83%	-96.76%
INDTERRAIN	48 Neutral	₹1.69B	-12.14	―	―	-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.

Soma Textiles Appoints New Independent Directors Amid Management Changes

Soma Textiles & Industries Ltd has announced the appointment of two new non-executive independent directors, Mrs. Sunita Gangadhar Jamkhande and Mrs. Archana Dheeraj Sonaikar, following changes in the company’s shareholding and management control due to a successful open offer. These appointments come after the resignation of the existing independent directors, creating vacancies on the board. The appointments are in compliance with the Companies Act, 2013, and SEBI regulations, and are subject to the approval of the company’s members.

Soma Textiles Announces Post-Offer Public Disclosure

Soma Textiles & Industries Limited has announced a post-offer public announcement related to a substantial acquisition of shares and takeovers. The announcement was made in compliance with SEBI regulations and has been published in several major newspapers across different languages. This move indicates a strategic shift in the company’s operations, potentially impacting its market positioning and stakeholder interests.