Sonam Ltd (SONAMLTD) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): 37.6
• Beta (1Y): N/A
• Revenue Growth: 36.01%
• EPS Growth: -37.44%
• Country: IN
• Employees: 182
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.55
• Shares Outstanding: 40,032,000
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 1.84
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 19.51
• 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: 74 Outperform
• Price Target: ―
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is driven entirely by financial performance: steady growth and profitability, improving balance-sheet leverage, and currently strong cash generation. The key risks tempering the score are margin compression in 2025 versus 2024 and past free-cash-flow volatility.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.

Balance Sheet Health

Improving leverage signifies a healthier capital structure, enhancing financial stability and reducing risk for long-term operations.

Cash Generation

Strong cash generation supports operational flexibility and investment capacity, ensuring the company can sustain and grow its operations.

Negative Factors

Margin Compression

Margin compression may indicate rising costs or pricing pressures, potentially affecting profitability if not managed effectively.

Free Cash Flow Volatility

Past volatility in free cash flow suggests potential challenges in maintaining consistent cash generation, impacting financial predictability.

Board Changes

Board changes can impact governance and strategic direction, introducing uncertainties in leadership and decision-making processes.

Sonam Ltd Business Overview & Revenue Model

Company Description

Sonam Ltd (SONAMLTD) is a diversified company operating primarily in the technology and manufacturing sectors. The company specializes in the development and production of innovative electronic devices and software solutions, catering to both consumer and enterprise markets. With a strong focus on sustainability and advanced technology, Sonam Ltd is committed to delivering high-quality products that enhance user experience and operational efficiency.

How the Company Makes Money

Sonam Ltd generates revenue through multiple streams including the sale of electronic products, software licensing, and service contracts. The company's core revenue comes from its flagship electronic devices, which are sold directly to consumers and through retail partnerships. Additionally, Sonam Ltd offers subscription-based software services that provide ongoing revenue from enterprise clients. Strategic partnerships with major retailers and technology firms enhance market reach and contribute to sales growth. Furthermore, the company invests in research and development to create cutting-edge products, ensuring a competitive edge in the market and promoting customer loyalty, which ultimately increases profitability.

Sonam Ltd Financial Statement Overview

Summary

Financials show steady revenue growth and consistent profitability, with improving leverage (debt-to-equity down to ~0.29) and stronger operating/free cash flow in 2025. The main offsets are recent margin compression versus 2024 and a history of earlier free-cash-flow volatility.

Income Statement

Revenue has grown steadily in recent years (2025 annual revenue up ~9.6% vs. 2024), and profitability remains positive with ~23% gross margin and ~6.1% net margin in 2025. That said, margins have softened versus 2024 (gross margin down from ~27% and EBITDA margin down from ~14.3% to ~12.9%), suggesting either higher input costs or pricing pressure. Overall, the income statement shows consistent profitability with moderate growth, but with some recent margin compression to monitor.

Balance Sheet

Leverage looks controlled and improving: debt-to-equity declined to ~0.29 in 2025 from ~0.39 in 2024 and ~0.62 in 2021, indicating a healthier capital structure over time. Equity has also expanded (to ~630M in 2025 from ~442M in 2021), and returns on equity are stable around ~10% in 2024–2025. The main weakness is that returns are solid but not exceptional, so the balance sheet is strong and getting stronger, but not yet translating into meaningfully higher shareholder returns.

Cash Flow

Cash generation is a clear positive: operating cash flow increased to ~104M in 2025 (from ~73M in 2024) and free cash flow stayed solid at ~86.7M, with free cash flow running at ~83% of net income in 2025—supportive of earnings quality. A key risk is the history of volatility (negative free cash flow in 2020 and 2021), even though the last several years have improved materially. Overall cash flow is healthy today, but investors should watch consistency through the cycle.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.19B	1.04B	876.39M	822.06M	870.71M	796.17M
Gross Profit	272.38M	239.98M	239.52M	184.10M	201.25M	176.34M
EBITDA	120.01M	134.23M	125.01M	88.69M	86.38M	76.29M
Net Income	64.81M	63.33M	55.16M	40.02M	33.97M	34.37M
Balance Sheet
Total Assets	0.00	977.22M	861.53M	857.64M	911.16M	840.06M
Cash, Cash Equivalents and Short-Term Investments	34.14M	34.13M	1.54M	497.00K	1.97M	1.75M
Total Debt	0.00	183.91M	221.56M	257.67M	298.38M	292.49M
Total Liabilities	-629.95M	347.27M	294.91M	335.14M	428.67M	398.04M
Stockholders Equity	629.95M	629.95M	566.62M	522.50M	482.49M	442.02M
Cash Flow
Free Cash Flow	0.00	86.72M	63.14M	63.98M	15.71M	-32.47M
Operating Cash Flow	0.00	104.04M	73.45M	81.11M	104.99M	46.99M
Investing Cash Flow	0.00	-43.40M	-7.70M	-17.09M	-89.20M	-79.33M
Financing Cash Flow	0.00	-58.40M	-64.73M	-65.50M	-16.95M	33.75M

Sonam Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONAMLTD	74 Outperform	―	37.62	―	―	36.01%	-37.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GANGOTRI	43 Neutral	₹20.22M	-25.42	―	―	―	―

Sonam Ltd Corporate Events

Sonam Limited Releases Financial Results for Q2 2025

Sonam Limited announced its standalone financial results for the quarter and half-year ending September 30, 2025. The results were approved by the board of directors on October 18, 2025, and subsequently published in the Western Times newspaper. This announcement provides stakeholders with insights into the company’s financial performance over the specified period, potentially impacting investor perceptions and market positioning.