Company Overview

Sonam Limited, originally incorporated as Sonam Clock Private Limited on June 21, 2001, was converted into a Public Limited Company in February 2018. Founded in 1996 and headquartered in Morbi, Gujarat, Sonam Limited operates in the manufacturing and trading of horological items, including clocks, clock movements, and related products.

The company holds ISO 9001:2000 certification and offers a comprehensive range of table and wall clocks across budget, mid-level, and premium price segments. Sonam Limited markets its products under multiple brand names such as Sonam, Lotus, LEXY, and ampm. Its primary manufacturing facilities are strategically located in Morbi, Gujarat.

Product Portfolio and Market Reach

The company boasts an extensive product range encompassing alarm timepieces, designer clocks, LED digital clocks, LCD clocks, light sensor clocks, musical clocks, office clocks, pendulum clocks, and sweep clocks. Additional offerings include picture God dial clocks, regular clocks, rotating musical clocks, special model clocks, and various sweep office clock variants.

Sonam Limited has cultivated a robust distribution network, selling over 1,400 different types of wall clocks, clock movements, and LED digital clock products across 25+ countries. This network comprises 150+ distributors and more than 35,000 retailers. The company also specializes in customized corporate clocks for bulk gifting purposes and exports its products internationally, highlighting its significant global market presence.

Financial Performance

As per the latest available data, Sonam Limited reported revenue of ₹104 crores and a profit of ₹6.33 crores. The trailing twelve months (TTM) profit after tax stood at ₹6 crores. The company achieved an operating revenue TTM of ₹92.8 crores with a net profit TTM of ₹6.1 crores, resulting in a net profit margin of 6.6%.

Sonam Limited has demonstrated sales growth of 11.7% over the past five years. The company has maintained a return on equity of 9.65% over the last three years. Over the last five years, revenue has grown at a yearly rate of 6.21%.

Market Capitalization and Valuation

Sonam Limited has a market capitalization of ₹185 crores as of April 4, 2025. More recent data indicates the market cap ranging between ₹189-196 crores, representing an increase of 28.8% over the past year. According to Value Research classification, it is categorized as a Small Cap company.

The company's valuation metrics suggest reasonable pricing compared to industry peers:

• P/B ratio: 3.78 times (as of April 4, 2025), representing a 25% discount to peers' median range of 5.07 times

• P/E ratio: 29.34 times (as of April 4, 2025), representing a 36% discount to peers' median range of 45.85 times

• Current PE ratio: 26.78

• Current PB ratio: 3.61

Management and Shareholding Pattern

The company is promoted by Jayeshbhai Chhabildas Shah and Deepaben Jayeshbhai Shah. Jayesh Chhabildas Shah currently serves as the Chairman and Managing Director. The promoters collectively own 54.07% of the total equity (as of March 2025). Promoter holding has seen a decrease from 72.28% (as of June 2024) to 55.14% (as of March 2025). Importantly, there is no promoter pledging in Sonam Limited.

Milankumar Sureshbhai Ganatra serves as the Company Secretary and Compliance Officer. The board includes independent directors to ensure robust corporate governance practices.

Investment Highlights

Despite reporting consistent profits, Sonam Limited is not currently paying dividends to its shareholders. The company has delivered a return of 28.82% over the last three years. Sonam Limited's strong distribution network and established brand presence in both domestic and international markets position it well within the competitive clock manufacturing industry.

The company's strategic focus on customized corporate gifting solutions and its ability to cater to diverse price segments, from budget to premium categories, provide multiple avenues for revenue generation. With manufacturing facilities strategically located in Gujarat and a comprehensive product portfolio spanning traditional and modern clock variants, Sonam Limited maintains a competitive edge in the horological products market.