Soma Textiles & Industries Ltd (SOMATEX) AI Stock Analysis

• Market Cap: ₹3.41B
• Dividend Yield: N/A
• Average Volume (3M): 21.64K
• Price to Earnings (P/E): 61.3
• Beta (1Y): 0.96
• 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: ₹103.00 ▼(-27.54% 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 top-line growth

Exceptional reported revenue growth provides a durable foundation: sustained top-line expansion supports scale, improves unit economics, and creates capacity to fund product investment and working capital. If sustained, revenue momentum can offset margin pressures and enable strategic reinvestment.

Low leverage and strong equity

Low leverage and a strong equity ratio give the company durable financial flexibility: limited debt reduces interest burden, preserves borrowing capacity, and lowers solvency risk. This balance sheet strength supports funding for capex, working capital, or strategic moves without destabilizing operations.

Improved cash conversion vs earnings

A healthy operating cash flow to net income ratio indicates quality earnings and improved cash conversion: this strengthens self-funding capacity for operations and capex and reduces reliance on external financing. Over months, reliable cash conversion enhances resilience despite free cash flow swings.

Negative Factors

Negative EBIT margins (operational inefficiency)

Negative EBIT margins point to core operational weakness: losses at the operating level mean revenue growth isn't translating into sustainable profitability. Over the medium term, persistent negative EBIT requires structural cost reduction or pricing improvements to make returns durable and support equity returns.

Volatile operating cash flows

Significant swings in operating cash flow and recent decreases in free cash flow signal cash management risk: volatile cash generation complicates budgeting, restricts capex and growth investment, and increases the likelihood of needing external funding, raising execution risk over months.

Severe EPS deterioration

A near-94% EPS decline shows pronounced earnings instability and potential one-off or recurring issues; such dramatic EPS deterioration undermines reinvestment capacity and investor confidence. Persistently weak EPS growth would constrain strategic initiatives and limit ability to build retained capital.

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

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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	65.10M	94.90M	57.27M	47.91M	139.63M	128.25M
Gross Profit	500.00K	1.60M	-546.00K	-1.32M	6.06M	25.72M
EBITDA	25.30M	688.70M	249.42M	1.76B	42.79M	-73.28M
Net Income	29.00M	692.70M	210.92M	1.65B	-164.17M	-215.34M
Balance Sheet
Total Assets	1.64B	1.62B	1.12B	869.19M	1.52B	1.54B
Cash, Cash Equivalents and Short-Term Investments	1.11B	951.40M	350.35M	10.71M	445.12M	278.20M
Total Debt	3.00M	29.10M	16.24M	95.30M	1.04B	1.10B
Total Liabilities	32.80M	38.80M	229.73M	117.75M	2.37B	2.23B
Stockholders Equity	1.61B	1.58B	885.27M	751.44M	-857.17M	-693.43M
Cash Flow
Free Cash Flow	147.90M	-87.10M	235.83M	1.70B	329.00M	-60.77M
Operating Cash Flow	147.90M	-59.60M	259.29M	1.70B	330.96M	-60.57M
Investing Cash Flow	9.20M	-5.40M	35.37M	202.57M	96.18M	61.27M
Financing Cash Flow	-27.10M	-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 114.11, above the 50-day MA of 118.83, and above the 200-day MA of 95.42, indicating a neutral trend. The MACD of -3.27 indicates Positive momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 13.83 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	₹17.53B	16.32	―	0.28%	34.25%	28.44%
NDL	65 Neutral	₹3.50B	35.76	―	―	45.69%	-26.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SOMATEX	50 Neutral	₹3.41B	61.26	―	―	-19.83%	-96.76%
INDTERRAIN	48 Neutral	₹1.44B	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.