Check Before You Invest : Sona Machinery Ltd

Snapshot

Q.1 Which industry/sub-sector does Sona Machinery Ltd belong to?

Sona Machinery Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Sona Machinery Ltd a good quality company?

Sona Machinery Ltd is a quality company, based on a 5-year financial track record.

Q.3 Is Sona Machinery Ltd undervalued or overvalued?

Sona Machinery Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Sona Machinery Ltd a good buy now?

Sona Machinery 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

Q.1 Return on capital employed (ROCE) of Sona Machinery Ltd?

Sona Machinery Ltd Return on capital employed is 8.04% for FY-2025, which is below its 5-year historical median of 81.72%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.2 Return on Asset of Sona Machinery Ltd?

Sona Machinery Ltd Return on Asset is 4.27%, which is below its 5-year historical median of 18.39%, indicating deteriorated asset utilization efficiency.

Q.3 Return on Equity (ROE) of Sona Machinery Ltd?

Sona Machinery Ltd Return on equity is 5.78% for FY-2025, which is below its 5-year historical median of 74.42%, indicating the business is making worse use of its shareholders capital.

Q.4 Gross Profit margin of Sona Machinery Ltd?

Sona Machinery Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.5% for FY-2025, which is below its 5-year median of 11.8%, indicating decreasing margins.

Q.5 Operating Profit Margin of Sona Machinery Ltd?

Sona Machinery Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.65% for FY-2025, which is below its 5-year median of 11.99% indicating decreasing margins.

Q.6 Net Profit Margin of Sona Machinery Ltd?

Sona Machinery Ltd Net Profit Margin is 4.06% for FY-2025, is below with its 5-year median of 7.41%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.5	11.8
Operating Profit Margin	6.65	11.99
Net Profit Margin	4.06	7.41

Q.7 Debt to Equity ratio of Sona Machinery Ltd?

Sona Machinery Ltd Debt-to-Equity ratio is 0.04, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Sona Machinery Ltd?

Sona Machinery Ltd Debt to cash flow from operations is -0.13, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sona Machinery Ltd?

Promoters hold 73.59% of the Sona Machinery Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sona Machinery Ltd vs industry peers?

Sona Machinery Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.01%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	12
Gross Profit Growth	-53.3	NAN
Operating Profit Growth	-58.3	NAN
Net Profit Growth	-63.2	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.05	0.91
ROE	5.78	12.81
ROCE	8.04	15.04
Cash Conversion Cycle (days)	59.85	107

Valuation & price assessment

Q.1 Stock return of Sona Machinery Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -56.58% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-56.6%

Q.3 Valuation ratios of Sona Machinery Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	14.24	19.39	29.52
Price to Book	0.8	2.05	2.90
Price to Sales	0.58	1.41	2.94
EV to EBITDA	7.06	8.75	15.76

Check more companies

1. Kirloskar Oil Eng

2. Triveni Turbine

3. Jyoti CNC Automation

4. Azad Engineering

5. Inox India

6. Aequs

7. Elecon Engg.

8. Tega Industries

9. Lloyds Engr Works

10. KRN Heat Exch Refrig

Check trending companies

1. JSW Infrastructure Ltd.

2. Aditya Birla Fashion and Retail Ltd.

3. Zydus Lifesciences Ltd.

4. Techno Electric & Engineering Company Ltd.

5. Cello World Ltd.