MoneyWorks4Me

Check Before You Invest : Sonu Infratech Ltd

BSE: 0 NSE: SONUINFRA ISIN: INE0JZA01018
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Sonu Infratech Ltd belong to?
Sonu Infratech Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Sonu Infratech Ltd a good quality company?
Sonu Infratech Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Sonu Infratech Ltd undervalued or overvalued?
Sonu Infratech Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings 4.93 19.55
Price to Book 0.73 2.17
Price to Sales 0.33 1.12
EV to EBITDA 3.66 13.18
Q.4 Is Sonu Infratech Ltd a good buy now?
Sonu Infratech Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

C: How much debt does the business have and is it at a sustainable level?

Q.1 Debt to Equity ratio of Sonu Infratech Ltd?
Sonu Infratech Ltd Debt-to-Equity ratio is 1.12, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Sonu Infratech Ltd?
Sonu Infratech Ltd Debt to cash flow from operations is -3.47, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Sonu Infratech Ltd?

Q.1 Promoter shareholding and pledge status of Sonu Infratech Ltd?
Promoters hold 52.70% of the Sonu Infratech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Sonu Infratech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Sonu Infratech Ltd vs industry peers?
Sonu Infratech Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) - 4.4
Operating Profit Growth (%) - 4.2
Net Profit Growth (%) - 7
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 0.94 1.09
ROE (%) - 12.27
ROCE (%) - 14.61
Cash Conversion Cycle (days) - 99

Valuation & price assessment

Q.1 Stock return of Sonu Infratech Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of 4.05% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - 4.1% -48.9%
Q.2 Valuation ratios of Sonu Infratech Ltd vs historical?
The current P/E ratio of 4.93 is lower than its historical median of 19.55, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 4.93 19.55 -
Price to Book 0.73 2.17 -
Price to Sales 0.33 1.12 -
EV to EBITDA 3.66 13.18 -

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